La Française des Jeux (FDJ) has declared to the markets that investors of Kindred Group Plc have accepted its offer to acquire the Stockholm-listed online gambling group.
On 2 October, the final day of the offer period, FDJ was authorised to acquire 196 million of Kindred’s Swedish depositary receipts, taking ownership of +90.66% of the group’s capital.
Prior to the transaction, Kindred had secured an ‘irrevocable commitment’ to acquire 26.7% of Kindred’s shareholding from the Stockholm firm’s five biggest shareholders, including the 1.11% shareholding of Veralda Investments, the private fund of former Unibet founder Anders Ström.
On 22 January, FDJ’s board proposed a cash offer of SEK 130 (€11.50) per share, valuing Kindred’s business at between €2.4bn and €2.6bn. This offer represented a 35% premium on Kindred’s weighted average closing share price for 2023.
Kindred’s Board of Directors and CEO Nils Andén unanimously recommended FDJ’s offer to shareholders. The acquisition received regulatory approval on 16 September.
FDJ will finance its M&A through available cash facilities and a bridge loan, underwritten by French banks.
FDJ describes the M&A as transformative for the European gambling sector, positioning the Paris Euronext group as Europe’s highest valued gambling Plc, following competitor Flutter Entertainment’s move to the NYSE.
The acquisition allows FDJ to enter new markets, including the UK, Sweden, the Netherlands, Denmark, and Belgium. The expanded business remains committed to being “100% active in regulated markets.”
In a statement, FDJ explained: “This €2.5 billion transaction creates a European champion with a diversified and balanced profile, based on monopoly activities like lotteries in France and Ireland, and online sports betting and gaming in open competition across Europe.”
The acquisition also allows FDJ to expand into all online gambling sectors, adding Kindred’s brands like Unibet, 32Red, Bingo.com, Maria.com, and games studio Relax Gaming to its portfolio.
In H1 trading, Kindred generated corporate revenues of £635m (+4%) and an underlying EBITDA of £132m (+25%), as management enforced strict cost controls ahead of the FDJ takeover.
Stéphane Pallez, Chairwoman and CEO of the FDJ Group, said: “I’m delighted to announce the acquisition of Kindred, a leading European player in the competitive online betting and gaming sector. Kindred’s strong brands, technological excellence, and attractive growth and profitability will strengthen FDJ’s position.
“Both groups share high standards for responsible gaming and a business model that combines performance with responsibility. This acquisition creates a new European champion that will continue to pursue sustainable and profitable growth for the benefit of all its stakeholders.”