La Française des Jeux (FDJ), a major player in the European lottery and sports betting industry, has announced the successful acquisition of the well-known online gambling and gaming operator Kindred Group. This significant transaction marks a milestone in FDJ's expansion strategy, further solidifying its position in the competitive European gambling sector.
Major Shareholder Participation in the Tender Offer:
As of the tender offer deadline on October 2, FDJ has acquired 90.66% of Kindred Group's shares through the tender of 195,659,291 Swedish Depository Receipts (SDRs). The acquisition also includes a direct purchase of 2,400,000 SDRs from Veralda, representing an additional 1.11% of Kindred's capital. After surpassing the 90% control threshold, FDJ will continue the acquisition and implement a squeeze-out procedure to delist Kindred from the Nasdaq Stockholm Stock Exchange.
To accommodate shareholders who have not yet tendered, FDJ has extended the tender offer period until October 18, 2024, with the purchase price maintained at 130 Swedish Krona per SDR. This extension provides the remaining shareholders a final opportunity to participate under the current terms, with settlement scheduled for October 29.
Kindred Group is renowned for its strong brand portfolio, including Unibet and 32Red, and has a significant influence in several top European markets such as the Netherlands, the UK, France, Sweden, and Belgium. This acquisition significantly enhances FDJ's competitiveness, especially in the online sports betting and gaming sectors—areas where Kindred excels.
Financial and Operational Synergies:
The transaction, valued at nearly 2.5 billion Euros, will create a diversified leader in the European gambling industry, combining FDJ's lottery monopoly with Kindred's online gambling operations. The new group is expected to derive about 26% of its revenue from international markets, with online gambling accounting for approximately 27% of its overall business activities.
Stéphane Pallez, Chairman and CEO of FDJ, expressed great enthusiasm for the acquisition, stating in a press release: "I am delighted to announce today the acquisition of Kindred, a leading competitive online gambling and betting company in Europe. Kindred has strong brands, recognized excellent technology, and attractive growth and profitability conditions, which will enhance FDJ's strength. Both groups also share high standards in responsible gambling and a business model that combines performance with responsibility. This acquisition creates a new European champion company, which intends to implement its sustainable and profitable growth strategy for the benefit of all stakeholders."
Earlier this year, the acquisition received approval from regulatory bodies such as the French Competition Authority, laying the groundwork for seamless integration of Kindred's operations with FDJ's broader strategy. This strategic move aligns with FDJ's commitment to expanding its influence in the highly competitive European online gaming market.
