The Swedish gambling group Cherry announced Friday that it has signed an agreement to acquire a 25 percent interest in gaming technology company, Highlight Games Limited, with an option to acquire a further 26 percent.
Highlight Games offers a unique and patented product, together with multi-year rights to use footage from historical football matches to create virtual sports content, and Cherry says that the investment further strengthens its position within gaming technology.
Highlight Games was founded in 2014 and develops sports-focused, and IP-protected virtual games for online and retail gaming operators. The company’s Soccer Bet product features footage from major European football leagues. Along with exclusive football rights the company will also deploy games across other sports in line with demand, to the virtual and sports betting market in 2017 and beyond.
Cherry has an option to acquire a further 26 percent in three further tranches over the next 18 months. The purchase price for Cherry’s initial 25 percent stake amounts to GBP 2.4 million, with 20 percent for new issued shares in Highlight Games and 5 percent purchased from an existing shareholder.
Anders Holmgren, CEO of Cherry, said in a press statement:
“We believe that Highlight Games has significant development and revenue generating potential, which we can help it achieve within our Gaming Technology business area. We also believe that their unique product can compete with both virtual sports games and traditional slot games. The product is applicable to a variety of markets, which will further diversify Cherry’s revenue sources.”
Tim Green, CEO of Highlight Games added: “Cherry becomes a shareholder at an exciting phase in the company’s development and will be an important strategic partner as we continue our roll-out of Soccer Bet and our other virtual sports products into retail, online and mobile customers.”