French gaming giant La Française des Jeux (FDJ) has officially completed its €2.45bn (£2.06bn/$2.70bn) acquisition of Kindred Group, a major online gambling operator.
The deal marks a significant move in FDJ's strategy to create a "European gaming champion" and strengthens its position as the second-largest gambling operator in Europe.
FDJ first made its bid for Kindred in January 2024, proposing a €2.45bn offer to acquire the company. To move forward, FDJ required at least 90% of Kindred’s shareholders to approve the deal. Initially, 27.9% of shareholders, including major investors such as Corvex Management, Premier Investissement, Eminence Capital, Veralda Investment, and Nordea, supported the offer.
In the months following, FDJ worked to gain the approval of the remaining shareholders. Although the acceptance period was initially set to end on 19 November, it was later moved to 2 October to expedite the process.
This adjustment proved successful, as FDJ received acceptance from shareholders representing 90.66% of all capital, including a direct purchase of 2,400,000 Swedish Depository Receipts (SDRs) from Veralda, equivalent to 1.11% of Kindred's total holdings.
With the threshold met, FDJ was able to finalise the acquisition, which had been unanimously recommended by Kindred's board of directors.
For Kindred shareholders who have tendered their SDRs, settlement and delivery are set to begin on 11 October. FDJ will also initiate a squeeze-out procedure on Nasdaq Stockholm. Shareholders who have not yet tendered their shares still have the opportunity to do so under the same terms until 18 October, with the final settlement scheduled for 29 October.
FDJ CEO and Chairwoman Stéphane Pallez expressed her enthusiasm for the completed deal, highlighting the long-term growth potential of the newly combined business.
"We are delighted to finalise the acquisition of Kindred Group," Pallez stated. "Kindred brings strong brands, recognised technological excellence, and a compelling growth and profitability profile. These strengths will complement FDJ's operations, allowing us to pursue sustainable and profitable growth."
She further added, "This acquisition positions us as a new European champion in the gaming industry, with a shared commitment to responsible gaming and a balance between performance and responsibility."
Kindred’s portfolio, which includes popular brands such as Unibet and 32Red, has a strong presence in key European markets including the UK, France, Sweden, and Belgium. This acquisition enhances FDJ’s ability to compete on a broader international scale.
FDJ, which traditionally dominated the French market, has been steadily expanding its international footprint. Recent acquisitions include the online horse racing betting operator ZEturf for €175m in October 2023, and Premier Lotteries Ireland (PLI) for €350m shortly afterward.
FDJ's latest financial results for the first half of 2023 underscored the impact of its recent acquisitions. Digital revenue saw a year-on-year increase of 39.8%, contributing to a total group revenue rise of 10.8%, reaching €1.43bn. Additionally, FDJ reported a 17.5% jump in consolidated net profit, totaling €213m.
The combined entity will see FDJ remain at the core of the business, with its ‘France Monopoly’ operations—comprising lottery and point-of-sale sports betting—making up 64% of the group's activities. Kindred’s B2C offerings, along with FDJ’s online sports betting, poker, and ZEturf, will fall under the ‘Competitive online betting and gaming’ segment, representing 30% of the group’s revenue.
‘International lottery’ operations, including PLI, will account for 4%, while FDJ’s ‘Payment and services’ division will cover the remaining 2%.
If the acquisition had taken place on 1 January 2023, FDJ estimates that the combined business would have generated €3.5bn in revenue and €840m in recurring EBITDA for the full year. Should the acquisition timeline shift to 1 January 2024, combined revenue for the first half of 2024 is projected to be approximately €1.90bn, with recurring EBITDA reaching €490m.
This acquisition marks a significant milestone for FDJ as it solidifies its place as a dominant force in the European gaming market, with ambitions to drive further growth and innovation.
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