Internet betting firm Cherry has announced that it has entered the affiliate sector of the gaming industry after it purchased a 51% stake in Game Lounge Limited.
As a result of the deal, Cherry will be able to offer more white label opportunities through the affiliate company. The acquisition will also likely positively impact Cherry's revenues, as it is expected to bring the group more than 40,000 new depositors.
Cherry paid a hefty amount to close the deal, putting up €1.43 million in cash, and the price tag could jump as high as €2 million if certain conditions are met. Cherry will also have the chance to purchase 100% of Game Lounge after three years.
Commenting on the deal Cherry CEO Fredrik Burvall said, "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."
"It has the potential to increase volumes at a much lower cost, both for Cherry’s current brands and the white label brands. The affiliate market is an important part of the online gaming industry and Cherry continues to strengthen its online business with this acquisition."
“Acquiring a profitable affiliate operation with a team highly skilled in search-engine optimization (SEO) and affiliation will also enable our brands to get strong positions on other affiliate sites and search engines."
Game Lounge CEO Jonas Cederholm added, "We know from working with Cherry that we will be able to launch Svea Casino as a top casino on desktop, mobile and tablet on one of the best platforms in the industry. 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.”