French gaming giant La Française des Jeux (FDJ) has made official a proposed acquisition of online betting company Kindred for 27.95 billion Swedish krona (around US$2.67 billion).
Both parties confirmed the news this Monday (22). FDJ aims to become the second largest gaming operator in Europe with this purchase, aiming to create a European champion in the sector.
The offer, made at 130 SEK ($12.4) per share in cash, represents a premium of approximately 24% over Kindred’s last share price on Friday the 19th, according to the official statement.
FDJ is recognized as one of the largest gaming operators in the world, offering everything from lotteries and poker games to sports betting and horse racing.
Details of the agreement between FDJ and Kindred
This agreement will allow FDJ to access Kindred’s extensive customer base, exceeding 30 million across Europe, North America and Australia.
FDJ’s gross overseas gaming revenue is expected to increase significantly from 6% to approximately 20%, boosting its international business.
Furthermore, the proposed merger will help FDJ consolidate its digital presence.
So, with the share of gross revenue from online games expected to rise from 14% to 29%, according to company information.
The offer received unanimous support from both boards of directors. Kindred urged its shareholders to accept the offer. Thus, officially launched for investors on February 19, with a term of up to nine months, subject to regulatory approvals.
Kindred CEO Nils Andén expressed his pleasure with the announcement of the transaction. He highlighted the possibility of creating a leading European gaming operator with the financial and strategic capabilities to expand globally.
“I am pleased to announce today’s transaction between FDJ and Kindred, creating a leading gaming operator in Europe with the financial and strategic capabilities to further expand its global presence,” Kindred CEO Nils Andén said in the statement. .
