Cherry acquires majority stake in affiliate business
Casino operator pays 1.4m upfront for 51% holding in Nordic-facing Game Lounge
Cherry AB has acquired a majority stake in Nordic-facing affiliate business Game Lounge in a deal worth up to 3.4m.
The casino operator has paid 1.4m upfront for a 51% shareholding with an extra conditional sum of up to 2m to be paid no earlier than 13 months after completion of the deal.
Cherry also has the option to acquire the remained of the business after three years.
The deal will see Game Lounge use Cherry as a while label partner for SveaCasino.com with additional Cherry brands to follow.
Cherry said the agreement would enable the firm to increase volumes on current brands and through future white label partnerships, as well as acquire customers at “significantly” lower cost.
Fredrik Burvall, Cherry acting CEO, said the affiliate market was an “important part of the online gaming industry” and the deal would give the operator a “stronger position” in the sector.
“Acquiring a profitable affiliate operation with a team highly skilled in search-engine optimization and affiliation will also enable our brands to get strong positions on other affiliate sites and search engines,” Burvall added.
Last month Cherry announced it was to enter the sportsbook market after striking a deal with fully- managed platform provider SBTech while in November CEO Emil Sunvisson left the firm as part of a wider management shake-up.