Swedish betting firm Cherry AB has announced the acquisition of Almor Holding Limited, an online betting firm that specializes in offering services to the German markets.
The deal will see Cherry AB owning 71% of Almor's shares and went official on July 1st. The negotiation will see Cherry having the right to claim earnings from May and June as well, which will likely report positive EBITDA for the remaining portion of the year.
Almor oversees the betting brands Kingplayer and Sunnyplayer, and was founded in 2011. The group offers both casino and sportsbetting games to their customers, and currently holds 55,000 active players.
Commenting on the deal Cherry President and CEO Fredrik Burvall said, "With this acquisition, Cherry immediately becomes a major online casino player in this major European market. In the short-term this enables Cherry to grow significantly and to strengthen the Online Gaming business division. The deal gives Cherry a larger and more significant presence in continental Europe, contributing positively to both our margins and our growth prospects."
Almor Company Director Alexander Knopf added: “Cherry’s international reach, multiple licenses, flexible technology platform and in-house game development will be highly complementary to our local market knowledge, established brands and customer base.”
In 2014 Almor netted €11.4 million in revenue, with profit of €1.2 million. The company has been paying VAT charges of 19% since January. The deal will be paid in 50% cash and 50% Cherry shares. Other cash consideration could also be paid at Cherry's discretion.