Cherry AB (publ) has today signed an agreement to acquire 25 percent of the gaming technology company, Highlight Games Limited, with an option to acquire a further 26 percent. Highlight Games offers a unique and patented product, together with multi-year rights to use footage from historical football matches to create unique virtual sports content. With this investment, Cherry further strengthens its position within gaming technology.
Highlight Games was founded in 2014 and develops innovative, sports-focused, and IP-protected virtual games for online and retail gaming operators. The company’s SOCCER BET product features footage from major European football leagues. Along with exclusive football rights the company will also deploy games across other sports in line with demand, to the virtual and sports betting market in 2017 and beyond.
Cherry is acquiring 25 percent of Highlight Games, with an option to acquire a further 26 percent in three further tranches over the next 18 months. The purchase price for Cherry’s initial 25 percent stake amounts to GBP 2.4 million, with 20 percent for new issued shares in Highlight Games and 5 percent purchased from an existing shareholder.
Anders Holmgren, CEO of Cherry, commented: “We believe that Highlight Games has significant development and revenue generating potential, which we can help it achieve within our Gaming Technology business area. We also believe that their unique product can compete with both virtual sports games and traditional slot games. The product is applicable to a variety of markets, which will further diversify Cherry’s revenue sources.”
Tim Green, CEO of Highlight Games added: “We are delighted to welcome Cherry as a significant investor in Highlight Games. Cherry becomes a shareholder at an exciting phase in the company’s development and will be an important strategic partner as we continue our roll-out of SOCCER BET and our other virtual sports products into our retail, online and mobile customers.”
For further information, please contact: Anders Holmgren, CEO, +46 708 607 534, [email protected] Christine Rankin, CFO + 46 76 539 94 92, [email protected]
Carolina Haglund Strömlid, Head of Investor Relations & Communications, +46 708 807 173, [email protected]
This information is information that Cherry AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above on 12 May 2017.
Cherry in brief
Cherry is a Swedish innovating and fast growing gaming company established in 1963. The business strategy is to create shareholder value by owning and developing fast-growing and profitable businesses within the gaming and casino industry. Cherry operates within five diversified business areas, Online Gaming through Cherry ComeOn!, Performance-based Marketing through Game Lounge, Gaming Technology through XCaliber. Game Development through Yggdrasil Gaming and Restaurant Casino through Cherry Spelglädje. The objective is to grow organic in combination with strategic acquisitions of fast-growing companies. Cherry employs around 1 100 people and has more than 6,000 shareholders. The Company’s B-shares are listed on AktieTorget.
