Cherry Online Gambling Buys Majority of Game Lounge

Published Saturday, January 31, 2015 -
Cherry Online Gambling Buys Majority of Game Lounge

Many online gambling operators have been consolidating and acquiring other businesses to gain a greater stake in their revenue generated by internet betting. A purchase was recently announced by Swedish online gambling operator Cherry to take a fifty one percent portion of Game lounge.

Late last year Cherry revamped its managerial staff with the aim as the Board chairman Rolf Åkerlind said then that Cherry wanted to put more of an emphasis on its online gambling operations, which accounted for 59% of the company’s overall revenue in Q3 2014. Cherry, also operates brick-and-mortar gaming and restaurants, and makes most of its money in the Scandinavian jurisdictions.  The arrangement will see Cherry  pay €1.4 million ($1.6 million) in cash for the existing shares and an additional purchase price of up to €2 million in shares or cash, a minimum of 13 months after the approved acquisition. This acquisition gives Cherry the opportunity to serve as a white label partner for the Games Lounge online SveaCasino.  An option to acquire the rest of the business after three years is also on the table for Cherry .

Cherry CEO Fredrik Burvall commented on the benefits of the deal, “The acquisition of Game Lounge is a significant development for Cherry as we enter into our first white label agreement and give Cherry a stronger position in the affiliate sector,” Burvall continued, “It has the potential to increase volumes at a much lower cost, both for Cherry’s current brands and the white label brands. Acquiring a profitable affiliate operation with a team highly skilled in search-engine optimisation (SEO) and affiliation will also enable our brands to get strong positions on other affiliate sites and search engines.”

Jonas Cederholm, CEO of Game Lounge also commented, “Our strength within SEO and affiliation and Cherry’s long experience with running online casinos is a good match which will enable us to grow further both within affiliation and through white labels.”




Related news

Return to Latest News