Cherry AB in preparations to sell ComeOn Group

Cherry AB is in talks with banks Moelis and Jefferies to source a buyer for its ComeOn Group business, according to Reuters reports.

ComeOn Group, based in Malta, is reportedly being valued at around €500 million, which is 8x to 9x its €60 million EBITDA forecast for 2025, according to the reports.

Cherry AB also owns restaurant gaming venues in Sweden and online B2B game developer Yggdrasil.

One source confirmed the plans to iGB, noting: “I’m not sure anyone strategic buys ComeOn, but it must be killing Bridgepoint to keep owning it.”  

Private equity giant Bridgepoint made an offer to Cherry in December 2018 as part of a consortium. It bid $1 billion at the time and subsequently delisted the Swedish gaming group from Nasdaq. 

At the time of the bid Bridgepoint partner Mika Herold said: “”We believe that many of the opportunities and challenges facing Cherry and its subsidiaries are easier to approach in a private setting and with a more favourable capital structure.” 

Sweden is one of the operator’s primary markets, but the market regulating in 2019 “hit the business hard” the source told iGB.  

Subsequent tightening of restrictions in Germany have also impacted Cherry AB’s online operations and, according to the source, it has sought to sell off Yggdrasil in the past but has not received any satisfactory offers.  

Reuters reports the talks are at a very early stage and Cherry will likely initiate an auction later this year.

ComeOn operates 15 brands, including ComeOn, Mobilebet and Getlucky and it received a licence to expand into the Dutch online gambling market in September 2022. It is a prominent name in Sweden’s online market.