One of Europe’s largest online gaming companies could finally be on the verge of a takeover.
Stockholm-based Kindred Group PLC, the owner of popular sportsbook operator Unibet, has received a $2.7 billion purchase offer from French gaming company La Francaise des Jeux (FDJ).
“The Board of Directors of Kindred unanimously recommends the shareholders of Kindred to accept the public offer from La Française des Jeux SA of (Swedish Crowns) 130 in cash per share,” the company announced Monday.
The offer price represents 10.9x the 2023 underlying EBITDA and 24% of Kindred’s closing price on Jan. 19.
Kindred has from Feb. 20 to Nov. 19 to accept the offer.
Changing the landscape
Purchasing Kindred, which owns nine gambling brands that serve more than 30 million customers globally, would make FDJ the second-largest gaming company in Europe.
“The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholder,” FDJ CEO Stephane Pallez said in a proposed acquisition announcement.
The French online and offline sports betting and lottery operator purchased Ireland’s national lottery operation in November. Gaining Kindred’s assets would expand FDJ’s access to the U.K., Italy, the Netherlands, Sweden, and Australia, and give the French company a profitable and recognizable brand.
Unibet operates in more than 100 countries and has nearly 10 million customers.
Following FDJ’s bid on Monday, Kindred announced that its total revenue for the fourth quarter of 2023 reached $396.3 million, a 2% year-over-year increase. Kindred recorded $1.52 billion in year-to-date revenue.
Hot pursuit
With Kindred’s board backing the proposed acquisition, it could end a bidding process from several high-profile gaming companies.
Kindred decided in April 2023 to review strategic business alternatives and underwent an executive restructuring in May 2023 to ramp up plans to sell the company and bring in people to facilitate a deal.
A pursuit of purchasing suitors was on. FanDuel-owned Flutter Entertainment, Entain, and Evolution AB were some of the big names that were rumored to be interested.
Meanwhile, Unibet pulled out of the North American market and cut 300 jobs in November 2023.
