Swedish gaming operator Cherry AB is exploring options to sell its online casino and sports betting subsidiary, ComeOn Group, as part of a strategic shift in focus. Cherry, owned by private equity firm Bridgepoint, is reportedly working with financial advisors at Moelis and Jefferies to evaluate the best course of action for its Malta-based subsidiary. According to insiders familiar with the matter, cited by Reuters, the possible sale could value ComeOn at around €500 million, based on its projected earnings for 2025.
The consideration to sell ComeOn aligns with a broader trend among European gambling operators that are offloading consumer-facing assets to concentrate on their business-to-business (B2B) services and software development. This follows a similar move by Playtech, which sold its Italian gaming division, Snaitech, to Flutter Entertainment in 2023 for €2.3 billion.
Early Stages of Sale Discussion
The decision to explore a sale for ComeOn is still in the preliminary stages. Although no sale is guaranteed, the value of ComeOn is being estimated at eight to nine times its expected EBITDA of €60 million in 2025. Cherry AB has not commented on the potential sale, and representatives from ComeOn, Bridgepoint, and their advisors have also declined to issue statements.
The potential sale would mark a significant move for Cherry, which took ownership of ComeOn in 2017 after purchasing 100% of its shares for €280 million. Since then, ComeOn has grown to manage 15 different online casino brands, including Mobilebet, Getlucky, and its flagship ComeOn brand, serving markets across Europe with a workforce of over 550 employees.
Challenges and Market Adjustments
Cherry’s interest in selling ComeOn stems in part from the challenges posed by tightening regulations in key markets. The Swedish market, one of the company’s primary regions, introduced regulatory changes in 2019 that impacted business performance. Similarly, increased restrictions in the German market have placed additional pressure on the group’s online operations. A source indicated that Bridgepoint is eager to divest ComeOn, stating, “It must be killing Bridgepoint to keep owning it.”
In addition to regulatory challenges, Cherry has faced difficulties with previous attempts to sell other parts of its portfolio. For example, the company reportedly sought buyers for its game development subsidiary, Yggdrasil, but did not receive offers that met its expectations. With the proposed sale of ComeOn, Cherry seems intent on restructuring its focus, shifting away from consumer brands in favor of its more successful B2B ventures.
Potential Buyers and Market Interest
If the sale of ComeOn proceeds, potential bidders could include European gambling operators and private equity firms with investments in the online gaming industry. With ComeOn holding a strong presence in markets like Sweden and having received a license to enter the Dutch online gambling space in 2022, the company’s portfolio is seen as an attractive asset for buyers looking to expand or strengthen their position in regulated markets.
The final outcome remains uncertain, but an auction could take place later this year, with Bridgepoint hoping to capitalize on ComeOn’s continued growth in the online casino and sports betting sectors. Despite the uncertainties, the company’s financial outlook remains strong, making it a valuable player in the broader European gaming landscape.
