Swedish gambling firm Kindred makes a $2.83B bid to takeover French gaming company FDJ, seeking to become 2nd largest in the European industry. (Photo by Simon Kadula on Unsplash)
The Swedish online gambling company, the Kindred Group, has confirmed it has made a takeover bid of the French gaming company, La Française des Jeux (FDJ).
The bid equates to $12.43 a share, creating a business valued at $2.83 billion. This would become the second-largest European gambling industry player and create value for FDJ shareholders.
The board of Kindred was recommended to accept the offer unanimously, recognizing their long-term growth potential.
We can match the size of this deal to 888 Holdings’ reverse takeover of William Hill, which was worth 2.9 billion Euros. 888 took the UK gambling giant off of the hands of Caesars Entertainment, who kept the US side of the William Hill brand.
About Kindred Group
The Kindred Group, with over 30 million customers and nine brands, is one of the largest global online betting businesses. Kindred has 2,500 employees within the region, handling their business throughout Europe, Northern USA, and Australia. They offer a very safe and secure environment for consumers wishing to gamble online. Kindred is also a European Gaming and Betting Association member and is listed on the Nasdaq Stockholm Stock Exchange.
Française des Jeux
The French company used to be owned by the French government and is the company that runs the national lottery. The English translation of the company name is the French Company of Games.
Cash Tender – FDJ 90% of Kindred’s Capital
The takeover bid will be an all cash tender launched for a maximum of nine months. The offer is subject to regulatory authorisations with FDJ’s acquisition of at least 90% of Kindred’s capital. Kindred’s shares rose approximately 17% and FDJ’s shares rose 3.9%.
There had been a lot of interest in Kindred recently including a potential merger or sale of the company. Stephane Pallez, Chairwoman and CEO said that she was enthusiastic about the potential takeover of the Kindred organisation, adding that she was happy to confirm that the takeover would be happening. She confirmed her thoughts that the amalgamation would create a strong and successful future for both Companies and would be welcomed by all shareholders.
If the takeover does go ahead it will alter completely the European gambling business and form a very powerful business with no shortage of resources. While the online gambling business expands, this amalgamation will show that the company wants to ensure the industry will grow in the correct way and become even more competitive with the resources that the joint business will have at their disposal.
Investors and industry analysts will be closely monitoring the developments surrounding this looming merger, whilst both companies prepare for an exciting future. FDJ provides lottery scratchcards in France. The French state owns a 20% stake in the Company. It is anticipated that the takeover of the Kindred Group will result in a rise of over 10% in its dividend per share.
CEO of Kindred, Nils Abden believes that the merger of the two organisations will accelerate their joint long-term projects and will also provide customers with a trusted source of entertainment. He believes that that addition of Kindred’s highly experienced and knowledgeable team into FDJ’s organization will assist in the creation of a leading online gaming business.
Who Kindred Group Teams Up With
Kindred Group partners with a ton of different gaming companies, software developers, and casinos to give their customers lots of great online gambling options. They own several casino brands and make deals with other big names in the industry too. Let’s check out some of their top collaborations:
Kindred-Owned Casino Brands
- Unibet – One of Kindred’s flagship online casino sites with a wide variety of slots, blackjack, roulette and other popular games.
- Maria Casino – Another Kindred online casino focusing on slot machines, bingo, and live dealer table games.
- Bingo.com – Started out as just online bingo, now offers other casino games too.
Major Company Partnerships
- Hard Rock Atlantic City – Kindred and this famous casino teamed up to offer online sports betting and other gaming to New Jersey.
- Evolution Gaming – Partnership to provide Unibet players in the US live dealer games like blackjack and roulette, streamed from Evolution’s studio in Atlantic City.
- Playtech – Deal for Playtech to supply its huge selection of online slots and table games to all of Kindred’s brands, boosting their gaming libraries.
Both Playtech and Evolution heavily feature here on Livecasinocentral in our game sections and under the software providers information page. Playtech and Evolution also own a number of other iGaming brands that also link up with Kindred via Playtech and Evolution B2B game delivery platforms. NetEnt, Ash Gaming, Quickspin, Ezugi, Red Tiger Gamimg, and more big names in the industry.
By partnering with major players like this in addition to owning top brands, Kindred gives its customers awesome variety and quality. And these deals help Kindred expand into new online gambling markets too!
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