La Francaise des Jeux (FDJ), the operator of the French national lottery, has acquired Kindred Group for approximately $2.67 billion. This transaction will represent a huge milestone for both companies as it is a key step towards creating Europe’s largest online gambling company.
FDJ’s international expansion:
The deal is almost done and Brother is for sale in Stockholm. It was listed by Corvex Management from New York, led by Keith Meister.
The FDJ will pay 27.95 billion SEKand all shareholders will gain 130 Swedish crowns for each share owned.
FJD is one of the leading offline lottery and sports betting companies across France. In addition to retail betting, the operator offers online sports betting and online gambling services. The company recently released data for the second half of 2023 and reported an increase of 6%, so the company had to a profit of almost 1.3 billion euros ($1.3 billion).
The acquisition of Kindred will represent a significant step towards the company’s international expansion, following the recent acquisition of Premier Lotteries Ireland. Thanks to the acquisition of Kindred, FDJ will be able to expand into key European markets such as the UK, France, Italy, the Netherlands and Sweden, as well as Australia.
Brothers in a difficult situation:
Kindred was founded in 1997 and has grown in value ever since more than 2.1 billion dollars. The company operates nine gambling brands, such as Unibetone of the leaders when it comes to sports betting, casino games, poker and bingo, and Highrollersthe brand dedicated to players willing to make bigger bets.
The company recently decided to focus on the European market and exit North America to redirect funds to this key market. Brother decided to suspend its operations in the Netherlands, which led to a significant decrease in quarterly profits. This also led to a decrease in the share price decreased by 30% due to decreasing revenue, so acquisition is a way to increase revenue and price again.
Like WSJ relationships, Corvex Management, the company’s largest shareholder, decided to pursue the changes and a majority of the board of directors agreed. But Kindred isn’t the only European company looking for a solution: many of them have seen declining share prices and revenues. Just recently, Corvex revealed a stake of more than 4%. To entertainand Ricky Sandler, managing director of Eminence Capital, joined the board to find the best solution.