Groupe Francaise des Jeux (Groupe FDJ) has put its B2B division Sporting Solutions up for sale and is seeking a buyer for the company acquired in 2019, with the clarification that the transaction price remains confidential.
Jake Pollard from Gaming&Co said that gambling group EuroNext, which owns Paris-based FDJ, two months ago hired London M&A experts Oakvale Partners to lead its search for a buyer for Sporting Solutions. This strategic move follows five years since the acquisition of FDJ Sporting Group and fits into its strategy of focusing on core B2C activities and expanding its international presence.
Over the past year, the French lottery and online betting operator has acquired Irish lottery group Premier Lotteries Ireland (PLI) and French online racing and sports betting brand ZETurf. At the end of January, the operator submitted a bid to acquire Unibet’s parent company Kindred Group for €2.5 billion, offering a 24% premium to Kindred’s current share price, with a pending review by French regulators within the next nine months.
The potential sale of Sporting Solutions was not surprising. For some time, sources close to both companies have expressed doubts about the alignment of the two groups, including issues such as the lack of integration of Sporting Solutions technologies into the FDJ structure.
FDJ has long-term plans to migrate to the Kindred platform as soon as it becomes available. Meanwhile, at the beginning of the year, Kindred entered into a three-year contract with longtime betting systems and platform provider Kambi Group.
Sporting Solutions’ results for the 2022 financial year showed a 7% increase in gross profit to £11.7m. However, EBITDA losses widened to £8.5m, up from £2.5m in 2021. Rising data and operational costs, which increased by 45% to almost £24m, were the main reason for the loss. The group said it intends to take steps in 2023 to review its cost base and improve operating efficiency and profitability.
Since its privatization in 2019, FDJ has pursued an aggressive growth strategy through mergers and acquisitions, with the bid for Kindred being the most prominent example of such a policy. According to the published results for 2023, FDJ saw revenue growth in the current financial year by 6.5%, reaching €6.5 billion. Additionally, it noted that its online NGR share now stands at 13% (~€338 million) of its total NGR, which stood at €2.5 billion.
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