Swedish online casino operator, Cherry AB, has announced the signing of an agreement that is set to see it spend a maximum of $28.9 million in order to complete its takeover of gaming affiliates firm Game Lounge Limited.

Already holds 95% stake:

The Stockholm-headquartered firm behind CherryCasino.com used an official Wednesday press release to detail that it currently controls 95% of Game Lounge Limited after purchasing 51% of the Maltese enterprise’s shares in January of 2015 before going on to acquire a further 44% stake approximately two years later.

Performance-related final price:

Cherry is responsible for more than a dozen online gaming domains including the likes of SunnyPlayer.com and SveaCasino.com and additionally owns games developer, Yggdrasil Gaming Limited. It revealed that the final price for the remaining 5% stake in Game Lounge Limited is to be paid in three installments and be tied to the target’s earnings before interest, tax, depreciation and amortization up to the end of 2021.

Read a statement from Cherry…

“The sellers are employees of Game Lounge Limited. Against this background, the acquisition constitutes a so-called related-party transaction and must therefore be approved by a general meeting in Cherry AB. Cherry AB’s board of directors will prepare a written account of the acquisition and obtain an independent valuation statement regarding Game Lounge Limited.”

Operations ‘have developed well’:

Cherry declared that it has decided to purchase the remaining shares in Game Lounge Limited due to the fact that the Malta-based firm’s operations ‘have developed well’ and are expected to ‘continue to enjoy favorable market conditions into the future’. It stated that the sellers of the 5% stake, who are believed to be local entrepreneurs and company founders Jonas Cederholm and Fredrik Langeland, are to remain in ‘senior positions’ and participate in its ongoing ‘incentive program.’