FDJ to acquire Kindred Group for Monumental $2.5B. Française des Jeux (FDJ), France’s leading lottery and sports-betting operator, is on the brink of finalizing what can only be described as a monumental deal.
They are going to purchase the Stockholm-listed Kindred Group for a figure reported to be around $2.5 billion. When completed, this will be one of the most significant iGaming-based deals in recent times.
The purchase of Kindred Group, valued at over $2.1 billion, is viewed as a strategic maneuver. It’s aimed at positioning FDJ as one of Europe’s foremost online gambling entities. This further demonstrates the company’s commitment to international expansion. The French company recently acquired Premier Lotteries Ireland in November 2023 for €350 million ($381.6 million).
Established in 1997, Kindred Group oversees nine well-known gambling brands, such as Unibet and Highroller, catering to customers in over 100 countries. The company’s strategic choice to withdraw from North America and concentrate on its core European markets has opened up opportunities.
FDJ wants to expand its presence in crucial regions, including the UK, France, Italy, the Netherlands, Sweden, and Australia.
The agreement with Kindred, which is active in various European markets and the UK, broadens its geographical reach. It also provides the company with an exclusive sports betting platform.
Kindred’s CEO, Nils Andén, expressed optimism regarding the proposal, highlighting that the amalgamation would be advantageous for both companies, resulting in mutual growth in the future.
Andén is optimistic that the partnership with FDJ will accelerate the progress of long-term strategic initiatives. Support sustained growth in key markets, and create a reliable entertainment platform for customers are examples.
Furthermore, Anden expressed excitement about integrating Kindred’s considerable experience and expertise into FDJ’s structure, actively contributing to the evolution of a premier online gaming enterprise.
In 2022, it is believed that Kindred contacted iGaming giants, Entain, 888, Tipico, Apollo Global and Blackstone to discuss the potential of a sale but this allegedly resulted in a lack of substantial interest.
Subsequently, in April of the previous year, Kindred initiated a comprehensive review of strategic alternatives, indicating the possibility of a merger, sale, or partial sale of the business.
Kindred has issued a “unanimous” recommendation for shareholders to accept the proposed offer. The acceptance period is scheduled to commence on or around 20 February and conclude on 19 November.
Key stakeholders in Kindred, collectively holding 27.9% of all shares, including Corvex Management, Premier Investissement, Eminence Capital, Veralda Investment, and Nordea. They all have committed their support to the offer.
However, the deal is contingent upon various closing conditions. For example, achieving a 90% acceptance from Kindred shareholders, obtaining regulatory approvals, and ensuring no other party presents an improved proposal.