Cherry's Game Lounge to Acquire Interclick Affiliate Program
iGaming conglomerate Cherry is always looking for new avenues to grow the business and increase income for the benefit of its shareholders. With that as the company's directive, they have just announced the acquisition of the well-respected affiliate operator Interclick Limited. The acquisition is being managed through Cherry's own Game Lounge affiliate program.
Under the terms of the deal, Game Lounge will take over control of the Interclick Limited Affiliate program that includes as many as 40 domains and affiliate accounts. This will be done in exchange for cash in the amount of $1.5m, which is due upon closing of the deal. It's worth noting that the cash is being raised strictly from Game Lounge's current operations.
After the deal has been completed, Cherry is expecting to start seeing a positive Return on Investment (ROI) within the first 18 months. That target was set based on the estimation that the new affiliate accounts will increase Game Lounge's revenues and EBITDA by €1.3m and €1.0m, respectively.
The acquisition is being initiated to increase Cherry's activities in the German and UK markets, which have been and are expecting to continue experiencing tremendous growth. Once the deal closes, all of Interclick's assets will be integrated and supported by Game Lounge's affiliate platform.
In a joint company press release, Fredrik Burvall, CEO of Cherry, stated: "The acquisition of the domains puts Cherry and Game Lounge in a stronger position in the affiliate sector, especially within the German and UK markets. We have been very pleased with the performance of Game Lounge so far, and this acquisition is very much in line with Cherry’s expansion plans. The affiliate market is an important part of the online gaming industry and Cherry continues to strengthen its online business with this acquisition.”
Jonas Cederholm, CEO of Game Lounge, added: “We are very happy to have reached an agreement with Interclick Limited, a company that has a long experience of affiliation. Both the German and UK markets are large and growing rapidly. The acquisition of the Interclick assets further accelerates our strategy and expansion beyond Scandinavia, and will be a beneficial contribution from day one."
Interclick has been successful in building its brand over the last 14 years, establishing an affiliate stronghold in the aforementioned German and UK markets.
The news come hot on the heels of the EuroSlots reboot, which Cherry announced just a week ago.