FDJ Completes Acquisition of Kindred

La Française des Jeux (FDJ) has successfully completed the acquisition of Kindred Group, marking a monumental shift in Europe’s gambling landscape. This deal elevates FDJ as one of the continent’s premier gambling operators, expanding its reach into new regulated markets. With Kindred’s portfolio and FDJ’s strategic vision, this merger creates a powerful, responsible gaming entity committed to sustainable growth. Discover how this acquisition transforms FDJ into “Europe’s Champion” and what it means for the future of the gambling industry.

FDJ Completes Kindred Acquisition, Poised to Become Europe’s Leading Gambling Operator

La Française des Jeux (FDJ) has officially declared the successful acquisition of Kindred Group Plc, cementing its position as a dominant force in the European gambling market. On October 2, FDJ revealed that investors had overwhelmingly accepted its offer, allowing it to take ownership of +90.66% of Kindred’s Swedish depositary receipts. This transformative deal solidifies FDJ’s status as Europe’s highest-valued gambling Plc, following competitor Flutter Entertainment’s listing on the NYSE.

Prior to the acquisition, Kindred had already secured an ‘irrevocable commitment’ from its five largest shareholders, who held 26.7% of the company’s shares. This included Veralda Investments, the private fund of Anders Ström, founder of Unibet, which held 1.11% of the stock. FDJ’s strategic move represents a significant expansion, positioning the company to enter key markets across Europe, including the UK, Sweden, Netherlands, Denmark, and Belgium.

In its cash offer, FDJ proposed SEK 130 (€11.50) per share, placing Kindred’s valuation at around €2.4bn to €2.6bn. This offer came at a 35% premium on Kindred’s weighted average closing share price for 2023, underscoring FDJ’s strong commitment to this merger. The proposal received the unanimous backing of Kindred’s Board of Directors and CEO Nils Andén, who recommended shareholders accept the bid. The deal achieved regulatory approval on September 16, setting the stage for its completion.

FDJ financed this acquisition through its available cash facilities and a bridge loan underwritten by French banks. The company describes the transaction as a “€2.5 billion move that creates a European champion with a diversified portfolio.” By integrating Kindred’s strong brands like Unibet, 32Red, Bingo.com, Maria.com, and Relax Gaming, FDJ is now poised to cover a full spectrum of online gambling activities, ranging from lotteries in France and Ireland to sports betting and online gaming across Europe.

A Strategic Expansion into Regulated Markets

FDJ has been clear about its commitment to operating exclusively within regulated markets, a principle shared by Kindred. With this acquisition, FDJ gains entry into highly competitive markets and bolsters its presence in sectors like online sports betting, casinos, and gaming studios. This alignment with regulatory compliance is key to FDJ’s growth strategy, reinforcing the group’s reputation for responsible gaming practices.

In the first half of 2023, Kindred reported £635 million in revenues, a 4% year-on-year increase, and an EBITDA of £132 million, marking a 25% jump. This strong financial performance was achieved through stringent cost controls as the company prepared for the FDJ takeover, demonstrating Kindred’s robust operational capabilities.

Stéphane Pallez, Chairwoman and CEO of the FDJ Group, expressed her optimism about the merger: “I’m delighted to announce the acquisition of Kindred, a leading European player in the competitive online betting and gaming sector. Kindred’s strong brands, technological excellence, and attractive growth and profitability will strengthen FDJ’s position.”

Pallez further highlighted the synergy between the two companies, stating, “Both groups share high standards for responsible gaming and a business model that combines performance with responsibility. This acquisition creates a new European champion that will continue to pursue sustainable and profitable growth for the benefit of all its stakeholders.”

FDJ’s Vision for the Future

This acquisition is a game-changer for the European gambling industry. By combining FDJ’s monopoly activities, such as lotteries in France and Ireland, with Kindred’s expansive portfolio of online gambling brands, the group can leverage a diverse and balanced business model. With this strategy, FDJ is set to compete more effectively on the global stage, particularly against industry giants like Flutter Entertainment.

Moreover, the acquisition provides FDJ with an opportunity to innovate and expand into new markets while maintaining a firm stance on regulated market operations. This approach aims to enhance player protection, foster responsible gaming, and ensure the long-term growth of the company in an increasingly competitive environment.

The acquisition of Kindred Group marks a transformative moment for FDJ, turning it into a European gambling powerhouse. By securing a dominant position across various regulated markets and incorporating some of the industry’s most recognized brands, FDJ is poised for sustainable and profitable growth. This move not only signals FDJ’s ambition to lead in the European gambling sector but also reinforces its commitment to responsible gaming and regulated market operations. As the newly formed “European Champion,” FDJ is now set to shape the future of online gambling, setting new standards for performance, innovation, and integrity.