FDJ set to acquire Kindred in deal worth $2.7 billion

Kindred, a gambling organization listed on the Stockholm Stock Exchange, is set to be acquired by French gaming company La Française des Jeux (FDJ) for a sum of $2.7 billion.

Kindred, the company that runs the gaming brands 32Red and Unibet, warned of a significant decline in full-year revenues and profitability in 2022 and launched a sales process in April of that year. Kindred’s withdrawal from the Netherlands, one of its major markets, was linked to the decrease.

Kindred’s worth is estimated at SEK 130 ($12.42) per share in FDJ’s all-cash offer. With the deal, FDJ expands globally and solidifies its position as a major online betting supplier in France, where it has a monopoly on lottery services.

After the deal, FDJ’s foreign revenue share will rise from 6% to one-fifth of the company’s overall sales. Kindred has around 30 million total subscribers, with 1.5 million of them being active in Western Europe, Scandinavia, and Australia.

After a protracted sales process during which activist investors like Corvex Management and Eminence Capital put pressure on Kindred to sell, the acquisition concludes the process. With a fifteen percent interest, Corvex is Kindred’s largest shareholder.

Stéphane Pallez, head of FDJ, highlighted Kindred’s market leadership and stressed how the merger would boost FDJ’s strategic position in sports betting. Kindred cited powerful brands, cutting-edge technological platforms, an enticing growth potential, and a commitment to responsible gaming.

Original story by: Asia Gaming Brief