Cherry AB Weighs Sale of ComeOn Group to Focus on B2B Services

Swedish Gaming operator Cherry AB is considering options to offload its online casino and sports betting subsidiary, ComeOn Group. The gaming operator is reportedly in talks with Moelis and Jefferies’ financial advisors to weigh its next course of action.

Cherry AB, owned by private equity firm Bridgepoint, will be one of the latest European gambling operators seeking to offload its consumer-based assets to focus on business-to-business (B2B) operations. Playtech recently joined the trend, selling its Italian-based gaming company Snaitech to Flutter Entertainment for €2.3 billion. As cited by Reuters, insiders familiar with the matter speculate that the sale could value ComeOn at around €500 million, based on its projected 2025 earnings.

Preliminary Stages of the Decision

The potential sale of ComeOn is still in its early stages and has yet to be guaranteed. Nevertheless, ComeOn’s value is estimated at 8-9 times its predicted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Representatives from Cherry, Bridgepoint, and ComeOn have yet to issue statements on the potential sale.

If the ComeOn sale happens, it would be a significant move by Cherry, which acquired 100% of the online gambling operator’s shares for €280 million in 2017. ComeOn has since expanded to accommodate 15 online casino and sports betting brands across Europe, including Getlucky and Mobilebet.

Market Challenges

While Cherry’s value and market reach has increased since its acquisition, it has also experienced challenges that inspire its potential sale. Sweden, one of Cherry’s primary markets, passed regulations in 2019 that limited its business operations. The operator also faced tightened restrictions in Germany that impacted its online performance.

On top of regulatory hurdles, Cherry also had trouble offloading other subsidiaries. For instance, the group sought the sale of Yggdrasil, a game developer on its portfolio, but the tabled offers were subpar. The sale of ComeOn will allow the company to divest its consumer-focused operations in favor of its B2B services, which are proving more successful.

Potential Market Interest

ComeOn’s sale is still up in the air, but an auction will likely be held later this year. Bidders potentially looking to purchase ComeOn are likely European-based private equity firms and gambling operators looking to strengthen their presence in regulated markets. Since Comeon has a significant market share in Sweden and recently acquired a Dutch online gambling license in 2022, it is a perfect candidate.

Lucas is a New Jersey-born and raised copywriter. His content encompasses casino, software provider, and game reviews, news, and blogs. Lucas’ professional writing experience spans more than six years. He works globally with clients from the US, the UK, New Zealand, Australia, South Africa, and Canada. Before he started writing gambling content, Lucas went to Rutgers University to pursue a bachelor’s degree in psychology. Just to shake things up, he became a painter, following in his father’s footsteps. He now writes full-time and doubles in painting now and then.

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