Swedish online gaming group Betsson acquires rival Cherryforetagen

Swedish online gaming firm Betsson AB (STO:BETS B) said it had sealed a SEK286m (USD45.4m/EUR33.8m) cash-and-stock deal to acquire domestic rival Cherryforetagen ab’s (STO:CHERB) online gaming sites Sverigeautomaten.com, Norgesautomaten.com and Danmarksautomaten.com.

The buyer will pay an initial consideration of SEK225m through the issue of new Betsson B shares and provide the remainder of the purchase price in cash after 12 months. The brands being acquired posted revenues of SEK168.2m in 2012.

Through the takeover, Betsson AB’s subsidiary in Malta, Betsson Malta ltd, which had so far been responsible for the operation of the Automaten sites, will assume responsibility for their external marketing as well.

The buyer said that the deal served its strategy to concentrate on the business-to-consumer model in its core markets in the Nordics. It expects the acquisition to bolster its earnings per share as of the second quarter of 2013.

As part of the agreement, Cherry will buy Cherrycasino.com from Betsson’s Maltese subsidiary for SEK1m.