When two companies seem to be developing faster than the market they’re a part of, it’s only natural that they should be drawn to one another. In this case we’re talking about the online gambling industry and two companies by the name of Cherry and ComeOn. The big news is that Cherry has just acquired a 49 percent stake of ComeOn’s shares, which is bound to significantly strengthen Cherry’s position in profitable Scandinavian markets.
A Bit about the Acquisition
On Monday, the 2nd of May, 2016, Cherry, a Swedish company, confirmed that they’d acquired 49 percent of the ComeOn Malta Ltd shares with a possibility of acquiring the remaining 51 percent by the end of the year. Here’s what Fredrik Burvall, CEO of Cherry AB, had to say about the merger:
This acquisition will strengthen Cherry’s position in Nordic and other European online gambling markets.
“This acquisition will strengthen Cherry’s position in online gaming against competitors in Scandinavia and other European markets. Both Cherry and ComeOn are growing considerably faster than the market as a whole, which facilitates further investments in existing brands and continued expansion in new markets. We will add several strong brands and will profit from the strong entrepreneurial spirit within ComeOn.”
ComeOn’s Multi-brand Strategy
ComeOn’s flourishing multi-brand strategy stretches over several well-established online casinos, such as ComeOn Casino, Mobilbet Casino, Casinostugan, Folkeautomaten Casino, Get Lucky Casino and Kasyno.pl. As of December 2015, ComeOn had 1,112,932 registered customers and Cherry aims to reinforce its customer base within sports betting, which accounted for approximately one third of ComeOn’s revenues in 2015.
Sports betting accounted for one third of ComeOn’s revenues in 2015.
In ComeOn’s spokesperson Hans Martin Nakkim’s words: “We are looking forward to joining forces with Cherry. Just like us, Cherry is growing quickly with a multi-brand strategy and we see a lot of potential synergies between the companies. We look forward to staying operationally involved with the new ownership, while still having a big stake in the future growth of the consolidated Cherry.”
As the option of purchasing the entire company remains, it’s yet to be seen whether this full acquisition will take place until the end of the year. Namely, Cherry has until the 31st of December, 2016 to decide whether they wish to acquire the other 51 percent of ComeOn’s shares. If the final decision is no, ComeOn has the right to rebuy the shares for €40m.