France’s state-owned lottery operator FDJ has made a $2.7 billion offer to acquire Sweden’s Kindred Group, a move that would create a dominant force in the European online gambling market. With a presence in 25 countries and combined revenue of approximately 3.5 billion euros, this deal would have significant implications for shareholders and the industry as a whole.
FDJ plans to finance the acquisition through a combination of debt and equity, and anticipates substantial synergies and value creation as a result. The Board of Kindred Group has unanimously recommended that its shareholders accept the offer, which represents a 29 percent premium over the company’s closing price on Thursday.
Industry experts see this acquisition as potentially transformative for the online gambling landscape in France. There is speculation that FDJ may leverage this opportunity to advocate for the opening of the online casino and slots market in the country. If successful, this could usher in a new era for the industry.
This deal is the latest in a series of acquisitions for FDJ, following its recent purchase of Premier Lotteries Ireland for 350 million euros. Kindred Group has been under pressure from activist hedge fund Corvex Management to explore strategic alternatives, leading to this significant consolidation in the European online gambling sector.
The acquisition will benefit both parties involved. For FDJ, it will fuel growth and expand its portfolio, allowing the company to combine Kindred’s online brands with its existing lottery monopoly in France and Ireland. Kindred, on the other hand, stands to gain enhanced value and reward for its shareholders, with FDJ offering a 24 percent premium over the company’s closing price.
Both FDJ and Kindred are committed to operating in regulated markets and complying with local laws and regulations. This focus on responsible and compliant operations ensures a solid foundation for their continued success.
Additionally, Kindred Group has released a statement confirming FDJ’s acquisition of all outstanding shares. This communication follows speculation in the press about a potential public offer by FDJ, and is in compliance with the EU Market Abuse Regulation. The statement also signals that Kindred Group remains open to exploring other options, including mergers or sales, to further enhance shareholder value. All eyes are on this major deal in the European online gambling industry as it unfolds, with stakeholders eagerly awaiting further updates.
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