As far as further expansion of its operations is concerned, the Swedish gaming operator Cherry AB has kept its focus right on the target over the last few months. Most recently, the company has announced the acquisition of additional 7.5% of Malta-based Almor Holding Ltd. The Maltese company, which was founded in 2011, has been one of the leading online casino and sportsbook operators which currently operates in a number of European markets, with primary focus on the German-speaking ones.
Back in 2015, Cherry bought a majority stake of 75% in Almor Holdings. Now, the stake of the Swedish operator in the Maltese company has increased to 82.5% after the latest acquisition of 7.5% of Almor’s shares. As revealed by the Swedish gaming company, Almor has maintained its better-than-expected performance which is one of the main reasons why Cherry could consider to purchase the remaining stake in the company.
In a special news release reporting for the purchase, Cherry revealed that the purchase price of the additional stake in Almor Holding would be paid alternatively in either a cash price of €1,219,889.50, or class B shares of Cherry. The announced share price is set on SEK307. In addition, the rights issue in the Swedish company needs to get the approval of the operator’s shareholders at their Annual General Meeting. The latter is scheduled for May 16th, 2017.
Cherry has the right to acquire the remaining stake in the Maltese company within a period of three years. As the company itself revealed on Wednesday, the remaining stake would be purchased on a multiple of five times EBIT (earnings before interest and tax).
The Swedish company is known as an innovator in the field of online gambling. Apart from having more than 50 years of experience, it is also one of the fastest-growing operators on a global scale. Following a business strategy of acquiring and developing fast-growing and profitable businesses, Cherry AB is also aimed at creating shareholder value and consolidating its positions on the market.
Up to date, the company operates in a number of prosperous business areas through its subsidiaries. Cherry iGaming specialises in online gaming, Yggdrasil Gaming works in the game development sector, while the XCaliber subsidiary of the company operates in gaming technology. Cherry also operates in a couple of other sectors, including performance-based marketing and restaurant casino through Game Lounge and Cherry Spelglädje, respectively.
As mentioned above, the operator has been primarily focused on expanding its reach on a global scale by making acquisitions of prosperous and fast-growing companies, and to generate organic growth through its operations. A number of important acquisition deals have marked the Swedish operator’s path so far, including the acquisition of the sports, casino and poker provider ComeOn, as well as the purchase of the industry subsidiary Interclick Limited.
- Author
Olivia Cole
