FDJ Announces Offer to Acquire Kindred, Expanding International Gaming Operations
FDJ, an international gaming operator, has announced its offer to acquire the entire share capital of Kindred, which is listed on Nasdaq Stockholm. The offer has been unanimously recommended by Kindred’s Board of Directors.
Kindred is one of the leading companies in the online betting and gaming sector in Europe. It offers a wide range of online services, including sports betting, horse racing betting, poker, and casinos, with brands such as Unibet and 32Red. Kindred operates in seven out of the top ten European markets, including the Netherlands, the United Kingdom, France, Sweden, and Belgium. In 2023, Kindred recorded revenues of £894 million, making it one of the top five operators in Western Europe.
The merger of FDJ and Kindred will create a diversified European leader in the gaming industry. This combination will enhance FDJ’s international presence, with online revenue accounting for 29% of its gross revenue, up from 14%. The merged group will offer a wide range of games in competitive markets, including sports betting, horse racing betting, poker, and online casinos.
FDJ and Kindred both uphold high standards of fair play and prioritize accountability in their business models. The combined group will operate only in regulated markets or markets seeking regulation, with plans to withdraw from the Norwegian market.
The acquisition of Kindred by FDJ will strengthen FDJ’s financial profile. Kindred achieved revenues of £893 million and an EBITDA of £205 million in 2023, with an EBITDA margin of 23%. The combination of Kindred and FDJ will create a financially attractive group, delivering accelerated revenue and cash flow growth, an EBITDA margin target of at least 25% by 2025, and significant earnings per share growth.
FDJ will finance the acquisition primarily through its available financial resources and with the support of a bridge loan from leading French banks. FDJ plans to refinance the bridge loan on attractive market terms and aims to achieve an investment-grade rating.
The merged group will leverage economies of scale, iconic brands, and proven technologies to create value for FDJ shareholders and benefit a wider range of stakeholders.
Frequently Asked Questions (FAQs):
1. What is FDJ?
FDJ is an international gaming operator that has announced its offer to acquire Kindred.
2. Who is Kindred?
Kindred is one of the leading companies in the online betting and gaming sector in Europe. It offers diverse services, including sports betting, online poker, and casinos, with brands like Unibet and 32Red.
3. Where is Kindred present?
Kindred operates in seven out of the top ten European markets, including the Netherlands, the United Kingdom, France, Sweden, and Belgium.
4. What are the plans after the merger of FDJ and Kindred?
The merged FDJ and Kindred group will offer a wide range of games in competitive markets, including sports betting, horse racing betting, poker, and online casinos. FDJ will enhance its international presence, with online revenue accounting for 29% of its gross revenue.
5. What are the fair play standards for FDJ and Kindred?
Both groups uphold high standards of fair play and operate only in regulated markets or markets seeking regulation. There are also plans to withdraw from the Norwegian market.
6. How will the acquisition of Kindred by FDJ impact the financials of FDJ?
The acquisition of Kindred by FDJ will strengthen FDJ’s financial profile. Kindred recorded revenues of £893 million and an EBITDA of £205 million in 2023, with an EBITDA margin of 23%.
7. How will FDJ finance this acquisition?
FDJ will finance the acquisition primarily through its available financial resources and with the support of a bridge loan from leading French banks.
8. What benefits will the merger bring?
The merged group will leverage economies of scale, iconic brands, and proven technologies to create value for FDJ shareholders and benefit a wider range of stakeholders.
9. What are FDJ’s long-term financial goals after the merger with Kindred?
FDJ aims for accelerated revenue and cash flow growth, an EBITDA margin exceeding 25% by 2025, and significant earnings per share growth.
Suggested Related Links:
– Official website of FDJ: fdj.com
The source of the article is from the blog radiohotmusic.it