Cherry eyes more acquisitions following ComeOn purchase
CEO Fredrik Burvall says chequebook remains open as firm looks to "make a mark on the industry"
Swedish gaming operator Cherry is planning to make further acquisitions this year after purchasing ComeOn earlier this week, the firm’s CEO Fredrik Burvall has revealed.
Cherry AB agreed a deal to acquire 49% of the shares in ComeOn Malta for ?80m, and also have the option to buy the remaining 51% later in the year, which Burvall says is “very likely” to happen.
And speaking to eGaming Review, Burvall revealed the operator will continue with its expansion plans as it aims to “build a business that will make a mark on the industry”.
“We are going to continue with the strategy we have to grow both organically and through strategic acquisitions,” he said.
The Nordic-facing operator has been busy in the M&A space during the past 12 months, including increasing its stake to 75% in the Malta-based company Almor Holding – a leading online casino in German speaking markets.
The increased stake in Almor was in addition to the acquisitions of Game Lounge, the domains and agreements of a leading Finnish affiliate, Moorgate Media and NorgesSpill.com.
“Last year we made five acquisitions, this is the first acquisition this year but it’s bigger compared to the others. Our organic growth is higher than the market growth, so we’re in a good position,” he said.
Burvall believes the acquisition has strengthened Cherry’s position in Scandinavia and other European markets. He added that bolstering the size of the company will be beneficial ahead of re-regulation reforms in Sweden.
“It’s very important now we have new regulation in Sweden coming in 2018. It’s important to have size in order to utilise the licence tax,” he said.
The operator says the acquisition provides them with a good opportunity for continued expansion, but Burvall remained tight-lipped as to which territories they are looking to enter.
“We are evaluating which countries we are going to go into, it’s a bit too early to say which ones, but of course we are looking at what’s going to happen in the Netherlands in terms of regulation,” he said. “There’s also an opportunity to go into some of the markets that you can run under a Malta licence.”