Cherry AB Finishes Purchase of ComeOn
One of the business deals of the past year that got the most attention in the online gambling world was Cherry AB purchasing just under a majority of stock in ComeOn. There were open negotiations for continuing that deal with a larger acquisition, and that's what has happened now with Cherry AB owning 100 percent of stock in ComeOn. This comes after a purchase of the remaining 51 percent.
How These Payments Break Down
The first thing to know is that they based the price of ComeOn on their total profit for 2016. This came to just under €290 million for the total purchase price, and it was broken up into two parts with the initial purchase being for €80 million. This was broken up into a cash payment and stock with over 3.3 million shares of series B and almost €126 million in cash. A deal of this size is obviously going to be a big deal in any industry, and that's especially the case right now in the online gambling industry.
About ComeOn Casino
A lot of players will be familiar with ComeOn Casino, a site that's been running since 2008 and that has a tremendous selection of games with a focus on mobile. They have mobile slots from Net Entertainment and other providers, and they have been a staple in the industry for quite a while with a very good reputation. Cherry has acquired this casino along with all of their other operations in this deal, but it doesn't look like service will be interrupted or really changed at all as a result.
Implications in the Industry
Over the past few years, we have seen some pretty big mergers and deals in the industry as a whole. In order to be competitive in the wake of so many new jurisdictions and other regulatory restrictions that have come up over the past several years, companies have been engaging in strategic purchases and takeovers that have given them the ability to become even more competitive. This is yet another example of this mentality, and it's looking like it'll be a good deal for everyone involved without hurting the players.
Press Release, Cherry Completes Acquisition of ComeOn news.cision.com, May 11, 2017By Jesse Eddleman