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Cherry acquires NorgesSpill Casino owner21 December 2015(PRESS RELEASE) -- Cherry has signed an agreement to acquire 100% of the shares in the Malta-based company Moorgate Media Ltd. The company owns affiliate license agreements in cooperation with Web Resort. Cherry has also acquired 100% of the domain, customer database and gaming site of NorgesSpill Casino. Cherry will pay €4.0 million for 100% of the shares in Moorgate Media Ltd that operates the affiliate business. It is expected that the acquisition will have a positive effect on Cherry's revenues with an estimated €0.4 million as well as a positive impact on EBITDA with an estimated €1.2 million on an annual basis. This acquisition will have an effect from the first quarter of 2016 and onwards. Today, the affiliate business is accounted for as a cost within Business Area Online Gaming. The acquisition will be depreciated over five years. In addition to the acquisition of Moorgate, Cherry has acquired NorgesSpill Casino for €0.75 million. The acquisition of NorgesSpill Casino is expected to add another €0.3 million to Cherry's EBITDA. The acquisition of Moorgate Media Ltd will be paid with shares in Cherry where the subscription price of the share is based on the average closing price of the Cherry shares during the period 16 – 23 of December. The acquisition of NorgesSpill is paid in cash where €0.6 million will be paid during Q1 2016 and the remaining €0.15 million will be paid once NorgesSpill Casino has been migrated to Cherry's platform. "We are very pleased to add another acquisition that will further improve Cherry's results and cash flow," said Cherry CEO Fredrik Burvall. "(NorgesSpill Casino) will migrate to the Cherry platform during 2016, and we are confident that we can develop the business further."
Cherry acquires NorgesSpill Casino owner
is republished from Online.CasinoCity.com.
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