French Gaming Operator FDJ Offers To Buy Kindred for $2.8 Billion

Article by : Erik Gibbs Jan 24, 2024

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La Francaise des Jeux (FDJ) has proposed a bid of 130 Swedish crowns per Kindred share, totaling 2.6 billion euros. This offer represents a premium of 24 percent over Kindred Group’s closing price on January 19.

Kindred Group, which initiated a strategic review, received interest from multiple parties and unanimously recommended FDJ’s offer as the most attractive for shareholders. Kindred emphasized that the offer recognizes its long-term growth prospects, considering associated risks.

FDJ’s Chairwoman and CEO, Stephane Pallez, expressed satisfaction with the acquisition, anticipating a stronger strategic position and significant value creation for stakeholders.

The acquisition plan positions FDJ as Europe’s second-largest gaming operator, fostering strengthened revenue and earnings growth.

La Francaise des Jeux (FDJ), recognized for its lottery scratch cards and backed by the French state with a 20 percent stake, has confidently revealed that acquiring Kindred Group will not only boost its earnings but also result in an accretion of over 10 percent in its dividend per share, commencing in the 2025 financial year and with payouts scheduled for 2026.

This strategic move aligns with FDJ’s aspirations to expand its presence in the gaming industry and capitalize on synergies with Kindred.

Both FDJ and Kindred share a commitment to responsible gaming, emphasizing a business model that blends performance with responsibility.

The unified entity is dedicated to operating exclusively in locally regulated markets or those undergoing regulation.

Kindred, a prominent figure in Europe’s online betting and gaming sector, stands out as a premier operator with a diverse portfolio covering sports, horse-race betting, poker and renowned casinos like Unibet and 32Red.

Reporting robust revenue of $1.1 billion in 2023, Kindred positions itself among the top five operators in Western Europe, operating in seven of the top ten European markets.

The impending merger of FDJ and Kindred aims to create a diversified European gaming powerhouse, anticipating an expanded international presence contributing 20% of gross gaming revenue (GGR), a substantial increase from the current 6%.

The combined entity is set to become highly digitalized, with online GGR soaring from 14% for FDJ to 29% for the merged group.