Cherry acquires NorgesSpill.com and affiliate company
Cherry has signed an agreement to acquire 100 percent of the shares in the Malta-based company Moorgate Media Ltd. The company owns affiliate license agreements in cooperation with Web Resort. Cherry has also acquired 100 percent of the domain, customer database and gaming site of NorgesSpill.com.
Cherry will pay EUR 4.0 million for 100 percent of the shares in Moorgate Media Ltd that operates the affiliate business. It is expected that the acquisition will have a positive effect on Cherry’s revenues with an estimated EUR 0.4 million as well as a positive impact on EBITDA with an estimated EUR 1.2 million on an annual basis. This acquisition will have an effect from the first quarter of 2016 and onwards. Today, the affiliate business is accounted for as a cost within Business Area Online Gaming. The acquisition will be depreciated over five years. In addition to the acquisition of Moorgate, Cherry has acquired NorgesSpill.com for EUR 0.75 million. The acquisition of NorgesSpill.com is expected to add another EUR 0.3 million to Cherry’s EBITDA.
The acquisition of Moorgate Media Ltd will be paid with shares in Cherry where the subscription price of the share is based on the average closing price of the Cherry shares during the period 16 – 23 of December.
The acquisition of NorgesSpill is paid in cash where EUR 0.6 million will be paid during Q1 2016 and the remaining EUR 0.15 million will be paid once NorgesSpill.com has been migrated to Cherry’s platform.
Fredrik Burvall, CEO of Cherry, comments: "We are very pleased to add another acquisition that will further improve Cherry’s results and cash flow. NorgesSpill.com will migrate to the Cherry platform during 2016, and we are confident that we can develop the business further.”
For more information, please contact:
Fredrik Burvall, CEO Cherry AB (plc), Phone +46 (0) 8 514 969 52, fredrik.burvall@cherry.se
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.SuomiCasino.com, www.Sunmaker.com, www.SunnyPlayer.com and www.Kingplayer.com), affiliate business through Game Lounge 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 2,900 shareholders. The Company's B-shares are listed on AktieTorget.