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Gaming affiliate conglomerate Cherry AB announced that they've purchased the outstanding shares of Game Lounge, giving them complete ownership of the Swedish company.
Cherry had controlled 95% of the company until they finalized the remaining purchase for 260 million SEK ($28.7 million USD). The first 100 million SEK is paid when Cherry gets the shares, with 60 million SEK being paid conditionally on the company's EBITDA for the first half of next year. The third threshold of 100 million SEK comes if Game Lounge's EBITDA exceeds SEK 300 million for consecutive calendar periods between July 1st, 20199 and December 31st, 2021.
The purchase agreement has to be approved of by Cherry's shareholders during a general meeting.
In a press release, Cherry spoke about Game Lounge's performance and the purchase decision, revealing: "The operations in Game Lounge have developed well and Cherry's Board of Directors makes the assessment that the company will continue to enjoy favourable market conditions into the future and that it is therefore desirable to increase Cherry's holding to 100 percent. The sellers will remain in their senior positions, are shareholders in Cherry and also participate in incentive program within the Cherry Group. Accordingly, the Board of Directors assesses that the terms of the acquisition, including the purchase consideration, are in line with the market and will therefore recommend that Cherry's Annual General Meeting approve the acquisition in accordance with the principal terms above."