CHERRYFORTRAGEN DEAL WILL HELP IT BRING LAND AND
ONLINE INTERESTS TOGETHER
5 February 2010
Scandinavian market the target for new
strategy
Cherryforetagen, the land based casino element in
Sweden's publicly listed gambling group Cherry, is said
to be making moves on the a wider front that includes
online operations with its acquisition of Coys, a
significant player in the Scandinavian online gambling
market.
Cherryforetagen is a stablemate to
Betsson and Net Entertainment within the Cherry group,
which has presumably encouraged its wider ambitions. In
February 2008 the company launched an online operation
branded PlayCherry.com, which will now be integrated
into the Coys operations.
These include brands
like DanmarksAutomaten, NorgesAutomaten and
SverigeAutomaten, which together boast some 55 000
registered customers according to company information
releases.
Coys has another Cherry Group
connection - its white label online casino is provided
by Betsson.
Talking about the acquisition this
week, Cherryforetagen chief executive Gunnar Lind said:
"This is a strategically important acquisition which
gives Cherry access to established brands in online
gaming and enables it to reach critical mass.
"We see great opportunities for continued expansion in
both existing and new geographic markets. From a
long-term perspective, we feel that physical games and
online games will be linked together, creating new
opportunities."
Coy owners Morten Klein and
Lorang Andreassen, who are understood to be both former
Cherry Group employees, will remain as part of the Coys
management structure.
The acquisition could earn
a projected increase in turnover for Cherryforetagen of
around SEK 150 million this year alone, increasing net
profit numbers by some SEK 30 million, calculated on
Coy's 2009 results.
The consideration paid for
Coys will consist of an initial cash payment of SEK 50
million; payment with shares of Cherryforetagen AB to
the value of 6.8 million shares; SEK 10 million in
deferred payments and an undisclosed amount to be based
on performance over the next three years.
Online Casino News Courtesy of
Infopowa
More news here.
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