FDJ, the French gambling giant, offers takeover bid for Kindred Group, parent company of Unibet

Kindred’s board of directors has unanimously recommended that shareholders accept the offer. The group, which also operates brands including 32Red, launched a strategic review in April during a difficult year which also featured the departure of a number of senior figures, including long-standing chief executive Henrik Tjarnstrom.

FDJ claims to be the number one gambling operator in France, the second largest European lottery, and the fourth largest in the world. The company’s chief executive and chairwoman Stephane Pallez said on Monday that the deal would diversify the company’s profile in online sports betting and gaming in Europe. She emphasized that Kindred is one of the leading operators in this market and has strong brands, advanced technology platforms, and a commitment to responsible gaming. Pallez also expressed excitement about welcoming Kindred’s management team into the combined group following the transaction.

Kindred chief executive Nils Anden believes that the deal with FDJ will create a leading European gaming operator with the capability to expand its global footprint. He stated that the merger will accelerate the delivery of long-term strategic projects, drive growth in core markets, and provide customers with a trusted source of entertainment.

Analyst David Brohan from stockbrokers Goodbody expects that Kindred’s shareholders will support the deal. He also noted that the valuation achieved highlights the value in European gaming assets and reflects the ongoing trend of consolidation in the sector.

In addition to the announcement of the deal, Kindred released a trading update. The update revealed that the total revenue for the fourth quarter of 2023 was £312.9m, representing a two percent increase compared to the same period last year.