FDJ completes Kindred acquisition to become a ‘European champion’

FDJ
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Groupe Française des Jeux has completed its acquisition of Kindred Group, a transaction of nearly €2.5bn that the operator says creates a “European champion” in the gaming industry.

FDJ’s acquisition of Kindred has been in the works since an offer was submitted for the Unibet and 32Red operator – SEK 130 in cash per Swedish Depository Receipt (SDRs) – back in January, an offer that was unanimously recommended by Kindred’s board of directors.

Since then, FDJ has been seeking Kindred shares to meet the condition precedent of controlling more than 90% of Kindred’s share capital, in addition to gaining the approval of the acquisition from France’s national competition regulator – the Autorité de la concurrence – last month, as well as from the Swedish Financial Supervisory Authority in February.

At the end of the offer period on 2 October, FDJ had tendered 195,659,291 Kindred SDRs, representing 90.66% of the group’s capital, in addition to acquiring 2,400,000 Kindred SDRs directly from Veralda, representing 1.11% of the group’s share capital.

Meeting the 90% share capital condition precedent, FDJ has completed the acquisition of Kindred, with the settlement delivery for Kindred shareholders who have tendered their SDRs to the offer to take place from 11 October. FDJ will implement a squeeze-out procedure on Nasdaq Stockholm.

FDJ also announced that it is extending its offer until 18 October 2024 at 5pm CEST to enable Kindred shareholders who have not tendered their shares to do so on unchanged terms, with settlement and delivery taking place from 29 October.

Commenting on the transaction, Stéphane Pallez, Chair and CEO of the FDJ Group, described 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”.

In addition, FDJ expects the offer to generate “around 26% of its revenue internationally” thanks to Kindred’s presence in European markets such as the Netherlands, the UK, France, Sweden and Belgium.

Meanwhile, its online gaming range open to competition will account for “around 27% of its business”, which includes sports and horse betting, poker and casino offerings.

“I am delighted to announce today the acquisition of Kindred, a leading European player in the competitive online betting and gaming sector,” commented 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.”