France’s FDJ Set to Acquire Kindred Group for $2.7 Billion

Posted on: January 22, 2024, 07:33h. 

Last updated on: January 22, 2024, 07:33h.

Francaise Des Jeux (FDJ.PA), the French national lottery operator, has entered an agreement to purchase Stockholm-listed online gambling giant Kindred Group (KIND SDB) for US$2.67 billion.

Kindred, Francaise Des Jeux, FDJ
The Kindred logo at the company’s HQ, above. Its shareholders are expected to accept the offer that would create a new European gaming powerhouse. (Image: Kindred Group)

FDJ will pay SEK130 (US$12.47) per share as part of the all-cash offer, which represents a 24.4% premium on Kindred shares’ value at the close of trading on January 19.

FDJ – From State-Owned to Online Gaming Giant

In 2018, the French government privatized the formerly state-owned FDJ by selling 50% of its ownership. As the biggest gambling operator in France, FDJ’s services extend to casino gaming and sports betting, in addition to holding the monopoly on the French lottery. In previous acquisitions, FDJ also secured its position as the second-biggest lottery operator in Europe and the fourth-largest globally.

Kindred, previously known as Unibet Group, is an online gambling company with popular brands like Unibet and 32Red. Its recent decision to withdraw from US markets came after underperforming in the sports betting sector.

But Kindred has now found a potential savior in FDJ, with the acquisition creating a strong new player in the European gaming market. This could position them as a competitor to major industry giants like Entain and Flutter Entertainment.

FDJ chair Stéphane Pallez explained that the enlarged company’s strategic positioning would significantly benefit the sports betting arm of FDJ’s operations. For Kindred, it’s seen as a move that can deliver long-term strategic projects and continued growth in core markets.

One of the real attractions of Kindred to FDJ is the ability to utilize excess cash flow from a privatized state monopoly. This offers the potential to grow a competitive platform, which FDJ hadn’t successfully achieved on its own,” noted Regulus Partners in a recent statement.

However, the deal is contingent upon an acceptance rate of 90% among Kindred shareholders and is subject to regulatory approval.

Source link

Leave a Comment