As of the 1st October 2016, Stockholm-listed Cherry AB (Cherry) has agreed to acquire Betman AB assets which will aid in the expansion of their Swedish gambling portfolio. Betman restaurant casino currently operates in 15 venues which include 27 gaming tables in Stockholm, Visby and Sälen. Cherry will acquire the casino agreement, equipment and the staff of Betman.
Cherry disclosed that the acquisition would be at a price of SEK 3.9 million (£350,000/€407,000) with the proviso that Betman will receive a cash payment of SEK 2.3 million upon acquisition and the remaining amount paid during Q3 2017. The deal is expected to generate an ROI within a two-year frame with the acquisition expecting to contribute SEK 11 million in revenue with a positive EBITDA of SEK 2 million.
According to the 2016 September Swedish Lotteries Gaming Authority statistics, Cherry will widen its market presence after this acquisition of restaurant casino to approximately 68% of the active gaming venues.
CEO Cherry AB Fredrik Burvall confirmed and commented on the acquisition stating:“The acquisition of Betman means that we further solidify our leadership position in the restaurant casino market. It further strengthens our position in Stockholm, Sälen and Visby and adds qualified personnel, while we can use our scale advantage to help the venues perform even better.”