Cherry Becomes Majority Stake Owner in Game Lounge

iGaming company, Cherry, has announced plans to purchase 100% of shares in Game Lounge Limited, after the company acquired 51% of the shares back in 2015. The purchase is expected to be carried out by financial transactions and a new batch of shares in Cherry AB. The part that is due to be paid in money should be finalized by April 2018, one month before the Cherry AB Annual General Meeting when the acquisition will be officially completed.

After this, the iGaming company will hold 95% of the stakes in Game Lounge Ltd, while the remaining 5% will be held by its founders who will retain their respective positions (CEO and Head of Sales).

Anders Holmgren, Cherry’s CEO, commented on the acquisition: “Game Lounge holds a strong position in a growing market. In the third quarter 2017, Game Lounge continued to grow, and revenue amounted to MSEK 45, an increase of 180 percent compared with the third quarter 2016. EBITDA margin amounted to 75%. Game Lounge’s business model is remarkably scalable, the company has unique capabilities in search-engine optimisation (SEO) and is the recognised standard in affiliation within the gaming industry, and we see great potential to expand the scope of the business to also include other segments, such as the loan website Lainat.fi, acquired by Game Lounge in November.”

Source:

“Cherry acquires majority of the outstanding shares of Game Lounge“, cherry.se, December 22, 2017.