Groupe Française des Jeux (FDJ) has finalized a deal to acquire Kindred Group for approximately €2.5 billion ($2.65 billion), which, according to the company, creates a “European champion” in the gambling industry.
FDJ’s acquisition of Kindred has been in development since January, when an offer was made to purchase the Unibet and 32Red operator for SEK 130 ($11.83) in cash per Swedish Depository Receipt (SDR). The Kindred board of directors unanimously supported this offer.
Since then, FDJ has been seeking Kindred shares to meet the condition of controlling more than 90% of the company’s share capital, as well as obtaining approval for the acquisition from France’s national competition regulator, the Autorité de la concurrence, last month, and from the Swedish Financial Supervisory Authority in February.
At the end of the offer period on 2 October, FDJ had submitted applications for 195,659,291 Kindred SDRs, representing 90.66% of the group’s capital, and had also purchased 2,400,000 Kindred SDRs directly from Veralda, representing 1.11% of the group’s share capital.
After fulfilling the condition of controlling more than 90% of the share capital, FDJ has completed the acquisition of Kindred. Settlement of shares for Kindred shareholders who have submitted their SDRs to the offer will begin on 11 October. FDJ will conduct the buyback procedure on Nasdaq Stockholm.
In addition, FDJ announced an extension of its offer until 18 October 2024 at 17:00 CEST, to allow Kindred shareholders who have not yet submitted their shares to do so under the same conditions, with settlement and delivery scheduled for 29 October.
Stéphane Pallez, Chair and CEO of the FDJ Group, commented on the Kindred acquisition as creating a “European champion” that will produce sustainable and profitable growth.
The group stated that through the acquisition, it now has “a diversified and balanced profile, based on monopoly activities, primarily lotteries, in France and Ireland, and on online sports betting and gaming activities open to competition in Europe”.
Additionally, FDJ forecasts that the acquisition will add “around 26% of its international revenue” thanks to Kindred’s presence in European markets such as the Netherlands, UK, France, Sweden and Belgium.
Meanwhile, its range of online games available to competitors will account for “around 27% of its business,” including sports betting, horse betting, poker and casino.
“I am delighted to announce today the acquisition of Kindred, a leading European player in the competitive online betting and gaming sector,” added Pallez.
“Kindred has strong brands, recognised technological excellence and an attractive growth and profitability profile, all of which will bolster FDJ’s strengths. The two groups also share high standards for responsible gaming and a business model that combines performance and responsibility.
“This acquisition creates a new European champion that intends to pursue its strategy of sustainable and profitable growth for the benefit of all its stakeholders.”
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