Française des Jeux Makes Major Move by Acquiring Kindred, Unibet’s Parent Company

The Française des Jeux (FDJ), the French lottery and gambling authority, announced this Monday its intention to acquire the Swedish operator Kindred for an impressive sum of 2.6 billion euros. This strategic purchase is aimed at strengthening FDJ’s online position and expanding its international market presence.

A 2.6 billion euros offer 

This major investment in Kindred, founded in 1997 by Anders Ström, represents not only a milestone in FDJ’s external growth journey but also a decisive step towards its focus on digitization. Kindred, owning influential brands such as Unibet, bingo.com, 32Red, and Maria Casino, is well-established in major European markets, representing over 70% of its activity. In 2023, the company reported a post-gambling tax revenue of 1.04 billion euros. 

The French public purchase offer (OPA) at 130 Swedish krona per share, represents a premium of 24% over the closing price on January 19, thus valuing Kindred at 2.6 billion euros. This ambitious initiative is supported by the boards of directors of both groups and is expected to open from February 19 for a maximum period of nine months. The completion of the offer is subject to the usual approval of regulatory authorities. 

Internationalization of Française des Jeux

In France, the integration of Unibet would allow FDJ to become the third major operator in the sector of sports betting and online gambling. This acquisition is also expected to accelerate FDJ’s internationalization in key areas such as sports betting, online casinos, bingo, and poker, making the company one of the leading players in the online gambling industry in Europe. 

With a forecasted expansion of gross gaming revenue from 6.7 billion euros to 7.9 billion, the combination of Kindred and FDJ’s strengths is being hailed by the market, with FDJ’s share witnessing a notable rise following the announcement. Analysts and executives underline the strategic importance of this transaction, terming it a significant step in transforming FDJ into a diversified player in the Western European gaming industry. 

FDJ plans to finance this acquisition through its available cash reserves and a bridge loan provided by French banks. The transaction, which is expected to be finalized in the fourth quarter of 2024, is part of a well-orchestrated growth strategy by FDJ.