Interactive
Finland – Cherry-owned Game Lounge acquires affiliate in Finland
By Phil - 27 July 2015
Scandinavian affiliate network Game Lounge has signed an agreement to acquire a prominent Finnish affiliate’s domains, including nettikasinovertailu.info, netticasino.eu, onlinecasinofindr.com, nettipokeri.eu, nettiveikkaus.eu and nettibingo.eu for a price of €1.2m.
In addition to incremental earnings, both Cherry and Game Lounge will gain a strong strategic position in Finland and profit from a larger and more significant presence in the market. The acquired affiliate sites will give marketing support to Cherry’s existing brands and upcoming white labels as well as significantly reducing costs for acquiring new customers.
The acquisition is expected to increase EBITDA figures by more than €600,000 annually, bring in more than 10,000 new depositing customers to Cherry and other operators over three years and quickly increase volumes on current Cherry brands. The acquisition is fully financed by Game Lounge operations and the deal is expected to generate ROI in less than two years.
Jonas Cederholm, CEO Game Lounge, commented: “Through this acquisition, Game Lounge continues to further strengthen its position as one of Scandinavia’s leading affiliate network. The domains will contribute positively from day one and we have the capacity to take them over and all of the operations without adding personnel. We see significant potential with the acquisition and it will play an important strategic role for the launch of our next white label in Finland.”
Fredrik Burvall, CEO Cherry, commented: “The acquisition of the domains puts Cherry and Game Lounge in a stronger position in the affiliate sector and especially within Finland. We have been very pleased with the performance of Game Lounge so far, and this acquisition will increase volumes at a much lower cost, both for Cherry’s current brands and upcoming white labels. The affiliate market is an important part of the online gaming industry and Cherry continues to strengthen its online business with this acquisition.”
