Cherry AB is reportedly shifting towards the sale of its online gambling subsidiary, ComeOn Gaming.
First reported by Reuters, the decision forms a key part of the group’s wider reorganisation strategy as it looks to evolve its offering.
Furthermore, the Swedish heritage gambling group has appointed Moelis and Jefferies to explore sale options for ComeOn.
According to sources, Cherry AB is eyeing around €500m, nearly doubling the €280m it paid for the firm in 2017.
The €500m sales target is based on a projected 2024 EBITDA of €60m for ComeOn, which has served as the online gambling arm of Cherry AB in Nordic markets.
Reuters also detailed that Cherry AB is among several European gambling groups considering divesting their consumer-led brands to concentrate on their land-based gambling units and contracts.
The assets of Cherry AB are under review by London private equity firm Bridgepoint, which acquired the Swedish gambling group in 2018 for €1bn, taking its business into private ownership.
ComeOn CEO Juergen Reutter has outlined lofty ambitions for the company, as it has sought to expand beyond casino and into the sportsbook vertical.
Outlining the firm’s plans for growth, Rutter previously stated: “Our strategy is to become a tier one operator in the sports market.
“For us, it’s a key goal because we are very dominant in the casino market, where we have significant market shares in our territories. But when it comes to sports betting, we are underrepresented.
“We are running at around 15% of our revenues from our sportsbook, but we believe our fair share, the fair share of the sports-led operator, lies at 30-35% and above. So we are here to double our sportsbook business in the next three years.”
He added: “We can only achieve that through the investment we have now made in product, platform and people to unlock that growth, and follow up on our strategy to become a tier one sportsbook operator.”
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