Cherry-owned Game Lounge acquires leading affiliate in Finland to support further expansion
The leading Scandinavian affiliate network Game Lounge has signed an agreement to acquire a prominent Finnish affiliate’s domains, including nettikasinovertailu.info, netticasino.eu, onlinecasinofindr.com, nettipokeri.eu, nettiveikkaus.eu and nettibingo.eu for a price of €1,2M. In addition to incremental earnings, both Cherry and Game Lounge will gain a strong strategic position in Finland and profit from a larger and more significant presence in the market. The acquired affiliate sites will give marketing support to Cherry’s existing brands and upcoming white labels as well as significantly reducing costs for acquiring new customers.
The acquisition is expected to increase EBITDA figures by more than €600,000 annually, bring in more than 10,000 new depositing customers to Cherry and other operators over three years and quickly increase volumes on current Cherry brands. The acquisition is fully financed by Game Lounge operations and the deal is expected to generate ROI in less than two years.
Jonas Cederholm, CEO Game Lounge, commented: “Through this acquisition, Game Lounge continues to further strengthen its position as one of Scandinavia’s leading affiliate network. The domains will contribute positively from day one and we have the capacity to take them over and all of the operations without adding personnel. We see significant potential with the acquisition and it will play an important strategic role for the launch of our next white label in Finland”.
Fredrik Burvall, CEO Cherry, commented: "The acquisition of the domains puts Cherry and Game Lounge in a stronger position in the affiliate sector and especially within Finland. We have been very pleased with the performance of Game Lounge so far, and this acquisition will increase volumes at a much lower cost, both for Cherry’s current brands and upcoming white labels. The affiliate market is an important part of the online gaming industry and Cherry continues to strengthen its online business with this acquisition”
For further information, please contact:
Fredrik Burvall, CEO Cherry AB (PLC), Telephone +46 8-514 969 52, +46 709-279 632, fredrik.burvall@cherry.se
Jonas Cederholm, CEO Game Lounge Ltd, Telephone +356 991-70 863 jonas@affiliatedream.eu
Stockholm, July 27, 2015
Fredrik Burvall
CEO Cherry AB (PLC)
Cherry in brief
Cherry is a Swedish gaming company established in 1963 specialized in online casinos and lotteries; (www.cherrycasino.com, www.EuroLotto.com, www.EuroSlots.com, www.SpilleAutomater.com, www.NordicSlots.com,www.NorgesSpill.com, www.SveaCasino.com, www.Sunmaker.com, www.Sunnyplayer.com and www.Kingplayer.com), affiliate business (www.SuomiCasino.com, www.SveaCasino.se and www.NorgeKasino.com etc.) and games development (www.Yggdrasil.com), through subsidiaries in Malta. Cherry is the market leader in casinos in restaurants and nightclubs in Sweden. Cherry employs around 750 people and has more than 2,600 shareholders. The Company's B-shares are listed on AktieTorget.
Game Lounge in brief
Game Lounge Ltd is a Maltese I-gaming company, focusing on the affiliate market towards Scandinavia via Search Engine Optimization (SEO). The company owns and manages over 300 websites with more than 40 gaming operators as partners, and is growing rapidly. Among the websites operated by the company are www.SveaCasino.se, www.MrBet.se, www.SuomiCasino.com and www.NorgeKasino.com. The company employs 14 persons.