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Catena Media Divests Italian Affiliate Business to Focus on North American Expansion

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Catena Media Sharpens North American Strategy with Italian Asset Sale

In a decisive pivot towards North American opportunities, Catena Media has successfully concluded the sale of its Italy-facing affiliate business, including the well-known Superscommesse brand, for a sum of €19.8m. This divestment is a result of the company’s strategic reassessment aimed at consolidating and expanding its footprint in the burgeoning North American market.

Catena Media’s exit from the Italian market involves the transition of its operations to two distinct buyers, with the prominent player Oddschecker acquiring Superscommesse. The transaction process is partially complete, with full closure anticipated by the end of the current year.

The payment structure for this deal is staggered across three installments, with €12.8m expected in the latter part of 2023, and the remaining €7m split evenly over the first and second quarters of 2024. Reflecting on the past year, Catena’s Italian operations have generated revenue of €7.8m and an EBITDA of €3.4m.

Michael Daly, CEO of Catena Media, expressed confidence in the successful transition of their Italian brands, anticipating their flourishing under new stewardship which will support their growth and development.

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This move is part of a broader strategy that has seen Catena Media offload assets worth €76m since its strategic overhaul commenced. This includes the notable sale of AskGamblers to Gaming Innovation Group (GiG). The proceeds from these divestitures are being strategically allocated towards debt reduction, thereby improving Catena’s leverage ratio.

Simultaneously, Catena is fortifying its North American presence, now established in 27 US states and Canadian provinces. Recent developments in the company’s leadership, such as the appointment of Pierre Cadena as VP of Corporate Strategy, underscore a renewed commitment to corporate development and strategic execution, setting the stage for Catena’s next chapter in the competitive gaming industry.

Jerome, a valuable addition to the Gamingo.News team, brings with him extensive journalistic experience in the iGaming sector. His interest in the industry was sparked during his college years when he participated in local poker tournaments, eventually leading to his exposure to the burgeoning world of online poker and casino rooms. Jerome now utilizes his accumulated knowledge to fuel his passion for journalism, providing the team with the latest online scoops.

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FDJ’s Acquisition of Kindred Group Shaping the Future of Global Gaming

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FDJ’s acquisition of Kindred Group, facilitated by regulatory approval and strategic shareholder engagement, signifies a transformative moment in the gaming industry. This deal exemplifies the intricate balance between regulatory compliance, shareholder value, and strategic growth ambitions. As the industry stands at the cusp of further consolidation and innovation, the FDJ-Kindred transaction heralds a new era of strategic realignment and competitive positioning in the global gaming landscape.


A Monumental Shift in Gaming Dynamics

The Swedish Financial Market Supervisory Authority (SFSA)‘s approval of Française des Jeux’s (FDJ) offer to acquire Kindred Group marks a pivotal moment in the global gaming and betting sector. This green light not only accelerates FDJ’s strategic expansion but also underscores the evolving landscape of international gaming regulations and corporate alignments.

Navigating Regulatory Waters

The SFSA’s endorsement is a crucial step in FDJ’s ambitious acquisition plan, setting the stage for a public offer slated to commence imminently. This regulatory approval highlights the meticulous scrutiny and compliance standards governing mergers and acquisitions within the sector, ensuring that such transactions align with market stability and shareholder interests.

A Call to Action for Kindred Shareholders

The forthcoming Extraordinary General Meeting (EGM) represents a critical juncture for Kindred Group, with proposed statutory amendments necessary for facilitating the acquisition. This meeting, aimed at achieving the requisite shareholder consensus, signals the importance of shareholder engagement in steering corporate direction and strategy.

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The Path to Acquisition: Shareholder Conviction and Strategic Vision

FDJ’s pursuit of Kindred Group, contingent upon securing 90% of total capital, reflects a strategic maneuver to consolidate its position in the global gaming market. The offer per share, valuing Kindred at approximately €2.6 billion, has garnered unanimous board endorsement and significant shareholder backing, illustrating the alignment of strategic interests and the perceived value of this consolidation.

Activist Influence and Strategic Realignment

The role of activist shareholders, notably Corvex Management, in advocating for Kindred’s sale underscores the dynamic interplay between corporate governance and shareholder activism. Their successful campaign for board representation and strategic evaluation reflects a broader trend of active investor engagement in shaping corporate trajectories.

Implications for the Global Gaming Industry

This acquisition not only exemplifies the financial and strategic considerations underpinning such deals but also highlights the regulatory complexities and shareholder dynamics involved. As the gaming industry continues to evolve, driven by technological advancements and regulatory changes, the FDJ-Kindred merger serves as a case study in strategic growth, market consolidation, and the pursuit of competitive advantage.

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