French gaming giant, Groupe FDJ, aims to create a “new European Gaming Champion” following its all cash offer to acquire Stockholm-listed Kindred Group.
The offer of SEK130 (€11.40) per share offer represents a company valuation of €2.6bn.
Kindred investors were notified of FDJ’s plans to form a merged European lotteries, gaming and sportsbook powerhouse, that would instantly become Europe’s “second-largest operator in the gaming sector”.
The offer has been unanimously recommended by Kindred’s Board and five key shareholders holding a combined 27.9% of the capital.
Stéphane Pallez, Chairwoman & CEO of Groupe FDJ, said: “I am pleased to announce today the proposed acquisition of Kindred. Fully aligned with our strategy, it will give the Group a diversified and balanced profile, based on several pillars: the monopoly activities, mainly the lottery, on our French historical market and, since November, in Ireland, with the acquisition of the Irish lottery operator PLI; and online sports betting and gaming activities open to competition in Europe.
“Given their respective histories, strategic strengths and core values, FDJ and Kindred are highly complementary, and I will be delighted to welcome Kindred’s management team and many talented individuals into the combined Group following this transaction. The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders.”
Nils Andén, CEO of Kindred, added: “I am delighted with today’s transaction announcement between FDJ and Kindred, creating a leading European gaming operator with the financial and strategic capabilities to further expand its global footprint.
“I believe that combining with FDJ, Kindred can accelerate the delivery of long-term strategic projects, continue to grow in core markets and provide a trusted source of entertainment to customers.
“It will also speed up our path towards 100% locally regulated revenue. I am also very proud that FDJ acknowledges and values the skilled employees and strong assets within Kindred.”