PARIS, FRANCE: French gaming operator FDJ has launched a tender offer to acquire all the shares of Kindred, one of Europe’s leading online betting and gaming companies, for SEK 130 per share. This offer, which is backed by Kindred’s Board of Directors and five major shareholders, values Kindred at €2.6 billion and represents a 24% premium over its closing price on 19 January 2024.
The acquisition will make FDJ the second-largest operator in Europe’s gaming sector, with stronger revenue and earnings growth. FDJ and Kindred share a commitment to responsible gaming and a regulated business model. The combined Group will operate on markets that are either locally regulated or on the way to becoming regulated.
The transaction will create value for FDJ shareholders, as it is expected to increase the dividend per share by more than 10% from 2025 onwards. The tender offer will be open for nine months, starting from 19 February 2024, and is subject to regulatory approvals and FDJ’s acquisition of at least 90% of Kindred’s capital.
Stéphane Pallez, Chairwoman and CEO of FDJ Group, 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. In this market, Kindred is one of the leading operators, combining strong brands, best-in-class technology platforms, an attractive growth profile and a committed approach to responsible gaming.
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, said: “I’m 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’m excited to bring Kindred’s extensive experience and know-how into FDJ’s organisation, contributing to the development of a leading online gaming business. I’m also very proud that FDJ acknowledges and values the skilled employees and strong assets within Kindred.”