Cherry AB Adds German Online Gambling Operator Almor Vale Holdings to Group of Accounts

Cherry AB

Cherry ABSwedish gambling group Cherry AB has announced that since July 01, 2015, Almor Vale Holdings has been added to the company’s group of accounts, after closing a deal to acquire 71 percent of the Malta-based online casino company. The press release disclosed that the deal was negotiated for a total consideration of €4.6 million, of which 50 percent will be paid in cash, while the remaining half will be paid in the form of Cherry AB shares.

Cherry disclosed that the deal also gave the company the right to receive earnings realized by the acquired balances for the months of May and June, as well as the Right of Refusal for the remaining shares over the next 4 years and 8 months. Almor Vale Holding’s primary online gaming and betting brands, Kingplayer, Sunmaker, and Sunnyplayer, all operating in German-speaking markets, are expected to report positive Earnings Before Interests, Taxes, Depreciation and Amortization (EBITDA) by the end of June and in the remaining half of 2015. The Sweden-based gambling giant expects that those contributions will increase the positive EBITDA projected by the company for the 3rd Quarter of this year.

After all, Almor’s three Germany-facing online gambling sites have established robust positions in their respective core market since their launch in 2011. Offering a wide range of sports betting products and online casino games, Almor’s online gambling facilities boast of around 355,000 registered customers, of which more than 55,000 have been actively using the sites from January to May of 2015.

A spokesperson for Cherry AB remarked during the Thursday announcement that his company believes that Almor Vale is the largest operator offering Merkur Slots, one of the most popular brands in Germany’s gambling arena, and the most favored titles played in Almor’s core gaming markets.

In 2014, Almor Vale Holdings had realized gaming revenue amounting to €11.1 million, and a net profit of €1.2 million. Despite the 19 percent VAT charges incurred by Almor from January to May 2015, the Malta-licensed online betting and gaming operator generated net gaming revenue of €5.9 million and posted an EBITDA of €800K for the 5-month period. The online gaming facility operator attributes such capability to the strong trading performance of the online casino and sports betting sites.

Almor’s existing management team continues to retain considerable stake as shareholders and will stay on to run the business, while focusing on expanding the core brands internationally, and in providing support to Cherry’s own existing businesses in the German markets.

The President and CEO of Cherry AB, Fredrik Burvall, conveyed through a press release that since their Group already holds all online casino licenses currently available, including a license issued by the Schleswig Holstein gaming authority, they have been able to develop a strategic arrangement in Germany. He added that the Almor Vale acquisition immediately made Cherry AB a key player in the online casino industry of a major European market. Therefore enabling Cherry to grow considerably, as well as strengthen its online gambling business in just a short span of time. Moreover, since they expect Almor Vale to contribute positively to the Group’s profit margins and growth prospects, the acquisition of Almor Vale’s majority shares will enhance significantly, Cherry AB’s presence in the European continent.