Kindred acquisition: FDJ closes the deal
The French gambling operator has completed its acquisition of the Swedish online gambling group.
France.- The Paris Euronext-listed gambling operator La Française des Jeux (FDJ) has completed its proposed acquisition of the Swedish igaming group Kindred, owner of the Unibet brand. The deal makes FDJ the biggest gambling operator in Europe in terms of market value.
FDJ announced a €2.45bn bid for the Swedish online gambling operator last year. The French competition regulator l’Autorité de la Concurrence gave the move the green light last month, leading FDJ’s proposal to buy Kindred Group last month, leading FDJ to bring forward the acceptance period for the deal from November 19 to October 2.
France’s l’Autorité de la Concurrence placed some conditions on the deal, warning that FDJ must not cross-sell its commercial gaming products to French lottery customers. This echoes the conclusions reached on FDJ’s acquisition of the horse racing betting operator ZEturf.
FDJ has pledged to keep the brands apart with separate websites and player databases. As such, players will still need to create separate accounts with FDJ and Kindred brands like Unibet. FDJ said French customers using Kindred brands would be unlikely to see any change as a result of the takeover.
Other conditions for the deal mean that FDJ cannot own more than 90 per cent of Kindred’s total shares. FDJ will finance the deal through available cash facilities and a bridge loan underwritten by French banks.
FDJ: Europe’s biggest gambling company
The acquisition of Kindred is the latest in a string of deals for the former state-controlled lottery operator. It has entered the payments space domestically while also snapping up the horseracing betting operator Zeturf. Internationally, it has added the Irish National Lottery operator Premier Lotteries Ireland to its growing portfolio.
FDJ says the new acquisition will be transformative for European gambling, making it the most highly valued group in the region now that Flutter has moved its listing to New York. It gains FDJ a presence in new markets, such as the UK and Kindred’s native Sweden as well as the Netherlands, Denmark, and Belgium, all regulated markets. The deal also means FDJ will have a presence in all online gambling verticals, gaining brands like Unibet, 32Red, Bingo.com, Maria.com and the games studio Relax Gaming.
FDJ said: “This €2.5 billion transaction creates a European champion with a diversified and balanced profile, based on monopoly activities like lotteries in France and Ireland, and online sports betting and gaming in open competition across Europe.”
FDJ chairwoman and CEO Stéphane Pallez said: “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.
“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 revenue for the second half was up 11 per cent year-on-year at €1.4bn following its acquisitions of Zeturf and PLI. Online betting and gaming revenue was up 15 per cent €294m thanks to favourable sports results. Group EBITDA was up 23 per cent to €370m.
The acquisitions helped boost digital revenue, which rose 40 per cent to €201m (up 25 per cent like-for-like). The digital segment represented 15 per cent of all revenue. Meanwhile, the FDJ lottery unit’s income was up 5 per cent at €958m on the back of new instant win games and attractive EuroDreams and EuroJackpot draws. The company noted that its Amigo retail network returned to full technical capacity at the beginning of June.
