Coys Ltd. Acquired by Sweden's Cherry Group for Online Gambling

Published Sunday, January 31, 2010 -

The competition for the online gambling Scandinavian market is heating up with companies positioning and consolidating to gain an edge. Cherryforetagen, the land based casino arm of Sweden's publicly listed gambling group Cherry, is said to be acting according to a plan that includes going online by acquiring Coys, a major player in the online gambling market in that region. Malta-based COYS Ltd. markets casino games in partnership with Betsson Services Ltd in a white label solution in which Betsson is responsible for aspects such as technology, customer management and payment processing.

In February of 2008 the company launched an online operation branded, which will now be integrated into the Coys operations. Along with Betsson and Net Entertainment, Cherryforetagen, Cherry group is achieving it's ultimate goal of capturing a larger part of the market in Scandinavia. The Swedish group now includes brands like DanmarksAutomaten, NorgesAutomaten and SverigeAutomaten, which combined have some 55 000 registered customers.

Gunnar Lind, CEO for Cherryföretagen, commented, “This is a strategically important acquisition which gives Cherry access to established brands in online gaming and enables it to reach critical mass. We see great opportunities for continued expansion in both existing and new geographic markets. From a long-term perspective, we feel that physical games and online games will be linked together, creating new opportunities.” The acquisition could turn a significantly bigger profit margin for Cherryforetagen even with the cash payment of 50 million SEK and the deferred payments deal which will be based on performance over the next three years to shareholders. It is obvious to investors that a deal that promotes the integration of land based entities and the new trend towards an internet offering by those institutions is a move that many gambling operators are looking into. The market for web based gambling is growing rapidly and companies that don't look progressively at the situation are going to be left behind. Consolidation is a necessity in the online gaming market today.



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