Swedish operators Cherry AB have recently signed an agreement with sports-focused gaming company Highlight Games Limited to acquire 25% of its shares now, and an option to acquire more down the line, an official press release reveals. The agreement comes not long after Cherry finalized the acquisition of Malta-based online platform Come On! and is aimed at further strengthening the position of the company in the iGaming sector.

Cherry AB is a decades-old gaming company that was launched in 1963 in Sweden. They currently operate five different gaming arms, including online game studio Yggrdasil Gaming and its own online casino platform through the recently acquired ComeOn! brand, apart from their land-based operations. The acquisition of a large stake will see Cherry use Highlight Games’ patented sportsbetting product SOCCER BET, which uses licensed footage from European football leagues to create proprietary virtual sports products, as well as their other sportsbetting and virtual sports services in current and future projects.

To acquire a 25% stake in Highlight Games, Cherry will be paying a sum of £2.4 million ($3.1 million) to the company. Twenty percent of the acquisition will come from newly issued stocks in Highlight Games, while five percent will be bought off from a current stakeholder. Per the agreement, Cherry are also given an option to acquire an additional 26% stake over the course of the next year and a half, in three subsequent tranches.

Commenting on the acquisition, Cherry CEO Anders Holmgren said that they believe Highlight Games has an important potential for growth and driving revenue and that its unique offer will be able to compete with both traditional slots and virtual sports products, but also allow Cherry to add even more diversity in their “revenue sources”.

Also commenting was Highlight Games CEO Tim Green, who said that Cherry are becoming a stakeholder at an exciting stage for the company and that they expect them to be strategically important in rolling out Highlight Games’ products into online, mobile, and retail sectors.