Bridgepoint’s Investment and Impact on Cherry AB
Private equity firm Bridgepoint acquired Cherry AB in 2018 in a $1 billion transaction, subsequently delisting the Swedish gaming group from Nasdaq.
At the time, Bridgepoint partner Mika Herold expressed confidence that Cherry’s subsidiaries, including ComeOn Group, could better address market challenges in a private setting with enhanced capital flexibility.
However, regulatory shifts in key markets like Sweden and Germany have created headwinds for Cherry’s portfolio.
Sweden’s regulatory tightening in 2019 significantly impacted ComeOn’s operations, while Germany’s evolving gambling restrictions have similarly constrained Cherry’s online performance.
In response, Cherry has reportedly explored the potential sale of its B2B game development subsidiary, Yggdrasil, though no satisfactory offers have been reported to date.
Expansion and Strategic Outlook
ComeOn currently operates 15 brands, including popular names like ComeOn, Mobilebet, and Getlucky, and was granted a license to enter the Dutch online gambling market in September 2022.
While Sweden remains one of ComeOn’s core markets, the company’s expansion into other regulated markets highlights its efforts to navigate shifting regulatory landscapes.
Next Steps for Cherry AB
According to sources close to the matter, Cherry is expected to initiate an auction process for ComeOn Group later this year.
While still in the early stages, this move could provide Cherry an opportunity to divest its interests in the online gaming space amid ongoing regulatory challenges in Europe.