After agreeing to acquire Malta-based online casino operator ComeOn Malta Limited in December, Swedish firm Cherry AB has now announced that the entire deal has been completed for just over $228.12 million.
Stockholm-listed Cherry AB, which is now the third largest online gambling operator in Scandinavia, is responsible for over a dozen gaming domains including CherryCasino.com, SunnyPlayer.com and SveaCasino.com and spent approximately $85 million in July to acquire a 49% stake in ComeOn Malta Limited before exercising an option for the remaining share of its smaller rival in December.
Cherry AB revealed that its acquisition of ComeOn Malta Limited, which holds online gaming licenses from authorities Malta, Curacao, the United Kingdom and the German state of Schleswig-Holstein, was funded from its own cash reserves to the tune of about $136.88 million while the remaining amount came from the $146 million it raised last month via the issuance of secured bonds.
“In accordance with International Financial Reporting Standards, ComeOn [Malta Limited] has been consolidated as a wholly-owned subsidiary from October 1, 2016, from an accounting perspective,” read a statement from Cherry AB.
In anticipation of successfully completing the purchase of ComeOn Malta Limited, late-March saw Cherry AB declare that it would be unifying all of its consumer-facing Internet gaming activities under a new ComeOn!-branded business division while continuing to run performance-based marketing via its Game Lounge concern with its XCaliber enterprise handling technology development.
March additionally saw Cherry AB, which employs around 900 people, proclaim that the Yggdrasil Gaming concern would continue to develop all of its online games with its restaurant casino operated by its Cherry Spelgladje subsidiary while the purchase of ComeOn Malta Limited is expected to triple its annual revenues to as high as $302 million.
“As a result of this acquisition and strong organic growth, Cherry AB is expected to triple its revenues and become the third largest Nordic-focused private sector gaming company,” read a December statement from Cherry AB. “The acquisition is also expected to deliver a sound basis for continued international expansion with strong brands.”