• ComeOn.com Purchased by Cherry AB

    22 May 2016

    Comeon com purchased by cherry ab

    Business deals happen all the time in every industry, but in the online gambling industry, the way jurisdictions and licensing is handled now means that even more strategy is involved in making purchases and acquisitions. Recently it's been announced that Cherry AB, a Swedish gaming company, has made a deal to purchase 49 percent of ComeOn, a popular brand that includes sites like ComeOn.com. They also have the option to purchase the remaining 51 percent at a later date.

    Which Properties Are Included?

    One question players will have right off the bat is about which properties are included in this purchase. ComeOn.com is the most obvious answer, but it also includes other brands like GetLucky.com, CasinoStugan.com, Mobilbet.com, folkeautomaten.com, Suomikasino.com and others. While some of these brands might not be as popular on a global stage, some of them are particularly well known, and they have over 133,000 total customers between their different brands combined.

    What's also important to realize is that ComeOn has several important licenses, including Curacao, Malta and the United Kingdom. A big part of this deal is obviously Cherry AB wanting to hold licenses in those jurisdictions, particularly in the United Kingdom, which many see as a very logical place to continue their expansion.

    Value of the Deal

    Right now, a total of EUR 280 million is considered the maximum that they'll pay for the entire ComeOn brand. This is based on a figure of 10 times the operating profit that they had in 2016, which is estimated at anywhere from EUR 19 million to EUR 23 million. What's interesting about this is that they posted a profit of only about EUR 13 million for last year, which was up a whooping 70 percent from 2014. ComeOn has clearly hit a quick stage of growth, and it looks like Cherry AB is trying to pick them up right away as a result.

    As of right now, EUR 80 million is being paid for 49 percent of the company, and they have until the end of the year to exercise their option to purchase the remaining 51 percent. That will largely depend on how ComeOn does this year, it would seem.

    Related News

    • 10 September 2019

      Content Producer Red Tiger Sold to NetEnt in An All-Cash Deal for £220 million

      Prolific and fast-growing online slot supplier, Red Tiger Gaming Limited, was acquired by iGaming giant, NetEnt. As far as the agreement states, NetEnt will purchase Red in an all-cash deal. The initial enterprise value is GBP 200 million, plus a possible additional sum of maximum GBP 23 million in 2022. The leading supplier’s income for the Q3 of 2019 accounts approximately for SEK 55 million of the transaction- and finance-related costs.

      Read full article
    • 19 July 2019

      Wazdan Extends its Nordic Market Reach by Obtaining Swedish Gambling License

      Casino games software developer, Wazdan, has announced the confirmation of their Swedish certification which will enable them to offer their games through Swedish operators. Confirmed this month, the developer is now fully certified for the Swedish market and their games have gone live through partners such as Kindred, Mr Green, Hero Gaming, and others. Unlocking the Swedish Market:

      Read full article
    • 23 December 2018

      Cherry AB Receives Eight Licenses for Swedish Online Gambling

      The Swedish Gambling Authority has been processing applications over the past several weeks for its upcoming regulated market that starts on January 1, 2019. This is a pretty big deal for online gambling in Europe as a whole, and Cherry AB has put themselves into a strong position with eight difference licenses being granted for operating brands within Sweden's borders in the new year as a part of this newly regulated jurisdiction. Size of the Swedish Market

      Read full article