herry will pay EUR 4.0 million for 100 percent of the shares in Moorgate Media Ltd that operates the affiliate business. It is expected that the acquisition will have a positive effect on Cherry’s revenues with an estimated EUR 0.4 million as well as a positive impact on EBITDA with an estimated EUR 1.2 million on an annual basis.
This acquisition will have an effect from the first quarter of 2016 and onwards. The affiliate business is accounted for as a cost within Business Area Online Gaming. The acquisition will be depreciated over five years. In addition,, Cherry has acquired NorgesSpill.com for EUR 0.75 million. The acquisition of NorgesSpill.com is expected to add another EUR 0.3 million to Cherry’s EBITDA.
The acquisition of Moorgate Media Ltd will be paid with shares in Cherry where the subscription price of the share is based on the average closing price of the Cherry shares during December 16-23.
The acquisition of NorgesSpill is paid in cash where EUR 0.6 million will be paid during Q1 2016 and the remaining EUR 0.15 million will be paid once NorgesSpill.com has been migrated to Cherry’s platform.
Fredrik Burvall, CEO of Cherry, said: "We are very pleased to add another acquisition that will further improve Cherry’s results and cash flow. NorgesSpill.com will migrate to the Cherry platform during 2016, and we are confident that we can develop the business further.”