Cherry acquires remaining 5% in Game Lounge
Swedish operator to own 100% of the affiliate following continued growth
Cherry AB agreed to acquire the remaining 5% shares in affiliate company Game Lounge Sweden, bringing its stake to 100%.
The purchase consideration consists of three parts and can amount to a maximum SEK 260 million, based on Game Lounge’s EBITDA over the next three years.
Cherry originally acquired 51% of the business for £3.4m back in January 2015 and exercised an option to buy an additional 44% of the business in December last year, before this final purchase.
Cherry said in a statement that Game Lounge operations had “developed well” and the board believed would “continue to enjoy favourable market conditions”.
The sellers of the stake are Game Lounge employees meaning the deal must be approved by shareholders at a Cherry general meeting.
Game Lounge revenues during Q2 increased by 74% to SEK57.4m (£4.9m), with the firm hailing its “strong position in a growing market”.