Cherry is to acquire a controlling 51 per cent stake in affiliate Game Lounge.

Cherry

The deal will also sees Game Lounge selecting Cherry as a white-label partner for SveaCasino.com and other brands in the future.

Cherry will pay €1.43m in a cash for the existing shares, and an additional purchase price of up to €2m to be paid, at the earliest, 13 months after the acquisition at which time Cherry can pay through shares or cash.

There will be an option for Cherry to acquire the remainder of the business after three years.

Fredrik Burvall, CEO Cherry, said: "The acquisition of Game Lounge is a significant development for Cherry as we enter into our first white-label agreement and give Cherry a stronger position in the affiliate sector.

“It has the potential to increase volumes at a much lower cost, both for Cherry’s current brands and the white-label brands. The affiliate market is an important part of the online gaming industry and Cherry continues to strengthen its online business with this acquisition.”