Kindred is set to be acquired by French operator group FDJ after its board accepted an offer worth SEK27.96bn (£2.1bn).
Kindred, whose strategic review of the business initiated last April attracted interest from “several parties,” said in a statement that the FDJ offer “represents the most attractive outcome for shareholders.”
Kindred’s board of directors “unanimously” recommended the takeover, which also received the approval of five major investors such as Corvex Management and Veralda Investment, who collectively represent 27.9 per cent of Kindred’s outstanding shares.
The offer from FDJ, which recently announced the acquisition of Irish lottery operator Premier Lotteries Ireland, amounts to a multiple of 10.9x Kindred’s 2023 underlying EBITDA.
FDJ Group chairwoman and CEO Stéphane Pallez said the move, which is “fully aligned with our strategy,” will give the group a “diversified and balanced profile” based on “several pillars.”
She pointed to the group’s French monopoly lottery activities, its acquisition of PLI and online sports betting and gaming activities open in Europe.
“The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders," she added.
The offer represents a premium of approximately 24.4 per cent compared to the closing share price of SEK104.50 of Kindred’s shares on the Nasdaq Stockholm on Friday, the final day before the announcement of the offer.
Details of the transaction were exclusively revealed by the Wall Street Journal over the weekend.
The deal is subject to a number of conditions including regulatory and 90 per cent of Kindred’s shareholders accepting the offer. The acceptance period the offer is expected to commence on February 20 and run until November 19.
Kindred said in its statement that FDJ does not intend to “materially alter” its operations as a result of the offer, adding that there are currently “no decisions on any material changes to Kindred’s or FDJ’s employees and management or to the existing organisation and operations, including the terms of employment and locations of the business.”
Indeed, Pallez said she “will be delighted to welcome Kindred’s management team and many talented individuals into the combined Group following this transaction.”
Nils Andén, Kindred CEO, said the transaction will create 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,” Andén added.
“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.”
