Many consider Virtual Sports an emerging market with a great future. Even more so, when the sport in focus is football, and Highlight Games (HG) has an interesting proposal in this area. In fact, it’s one that did capture the attention of investors. Indeed, Cherry AB has acquired over 50% of the shares of HG Ltd. The transaction has a total value of £5.4 million.
It marks the game developer’s effective consolidation in the Cherry Group. As you know the Cherry Group is a major player in the online gaming industry. In fact, the group has over 15 online casinos such as Betsson, Betsafe, Mr Smith and Nordicbet to name a few.
First, the Numbers…
To sum up, The Cherry Group had an option to get shares amounting to 7.8%. And the company has now decided to exercise this option. But it also got hold of yet another chunk of the developer’s shares. More precisely, of shares of parties not active anymore in the company. All and all, these shares are worth 15.1% of the company.
The total purchase price of the two transactions amounts to £5.4 million. The group financed both transactions in their entirety by cash. By the purchase of the total 22.9% of available shares, Cherry’s total ownership sums up to 60.4%. And this means the effective consolidation of HG under the group as of 7th August. The game developer will be operating under Cherry’s Game Development business area.
Unique Virtual Sports Product
HG is a developer of a one-of-a-kind virtual sports product. Recently, it started to offer its SOCCERBET game in various African countries. The company also holds rights to unique content like historic live footage of football matches. Besides, it plans to build on these assets in the near future. And they’ll do so by developing new virtual offerings. Not only in football but also in other sports.
The company also set its eyes on a new market. Indeed, the €2 billion virtual sports market in Italy is very attractive. As a result, HG will launch there, too! They will do so in cooperation with Eurobet. But the deployment strategy of their innovative product includes other local operators. In short, HG’s strategy targets various opportunities, mainly in emerging markets.