Cherry AB has announced the finalisation of its acquisition of a further 44 percent of Game Lounge – announced late December 2017.
The company said the consideration agreed for the further share in the affiliate company had been set at SEK 189,292,750, of which approximately SEK 94,646,375 is intended to be paid in cash.
The purchase price for the additional 44 percent is based on a multiple of 4.5 times 2017 EBIT earnings pertaining to affiliated operations and six times 2017 EBIT for the white label business.
Cherry AB (publ)’s wholly owned subsidiary Cherry Malta Ltd acquired 51 percent of the shares in Game Lounge Ltd in January 2015 (see previous reports).
Five percent of Game Lounge shares will remain with co-founders Jonas Cederholm and Fredrik Langeland who will stay on as the company’s CEO and head of sales respectively.