Sweden’s Cherry has completed the 49 per cent acquisition of ComeOn Malta, with the deal expected to have an immediate positive impact on its profitability.
Cherry first announced a deal to acquire the stake in early May. This has now been completed after it issued 2.9m shares in the company to ComeOn’s vendors and paid €39.7m in cash for a total consideration of €80m.
The company also has an option to acquire the remaining 51 per cent stake in ComeOn for a maximum of €280m (on a debt-free basis), with the option exercisable between October 1st and December 31st this year.
The operator, which owns brands including ComeOn, Mobilbet, Folkeautomaten and Casinostugan, generated preliminary sales of €48m in H1, with EBIT of around €10m.
Cherry said that this showed that ComeOn’s financial performance was in line with the group's expected operating profit for 2016 of between €19m and €23m.
“Now we have completed the acquisition of the first 49 percent of ComeOn, we will, together with ComeOn, initiate the work of maximizing our common values and customer offerings with the goal to strengthen our common operation,” said Fredrik Burvall, CEO of Cherry.
“It is important that we and ComeOn clearly schedule the process so that when the final integration takes place it will be both swift and efficient.”