FDJ Launches €2.45 Billion Takeover Bid for Kindred Group

La Française des Jeux (FDJ) has proposed a €2.45 billion acquisition of Kindred Group. The bid, revealed on Monday, comes as part of FDJ’s ambitious plan to establish itself as a key player in gaming sector.

FDJ’s offer of SEK130 in cash per Swedish Depository Receipt (SDR) represents a 24.4% premium over Kindred’s closing share price on January 19, signaling a strong commitment to the proposed acquisition. The deal, if successful, would create the second-largest gaming operator in Europe, generating enhanced revenue and earnings growth.

Kindred Group, a leading operator in online gambling across North America, European markets and the UK, has unanimously recommended that its shareholders accept FDJ’s offer. Notably, five key Kindred shareholders, holding a combined 27.9% stake, have already pledged their support for the acquisition.

FDJ’s CEO and Chair, Stéphane Pallez, sees the proposed merger as a strategic alignment, highlighting the complementary strengths of both companies. Pallez envisions the creation of a “European gaming champion” that combines FDJ’s historical market monopoly with Kindred’s expertise in online gaming.

The acquisition offer follows Kindred’s strategic review initiated in April 2023, which explored various options, including a potential sale or merger. The proposed FDJ deal is deemed the most attractive outcome by Kindred’s board, aligning with the company’s long-term growth prospects.

FDJ’s recent expansion efforts, including the acquisition of Premier Lotteries Ireland and horse race betting operator ZeTurf, highlight the company’s commitment to diversification beyond its traditional lottery and sports betting businesses.

The deal is subject to closing conditions, including regulatory approvals and a minimum acceptance threshold of 90% of Kindred shareholders. The acceptance period is set to begin in February and expire in November, with the transaction expected to be completed in 2025.

Related pages:

• Kindred Group profile (Projects and Financial indicators)