FDJ's €2.45 Billion Bid to Acquire Kindred Group
Date: 2024-01-24 Author: Dima Zakharov Categories: EVENTS
FDJ's Ambitious Acquisition
La Française des Jeux (FDJ) has taken a bold step towards expanding its presence in the European gambling market with its bid to acquire Kindred Group. The announcement, which came on January 21, has raised questions about the motivation behind this deal and its potential benefits.
Aligning Strategies
Both FDJ and Kindred addressed these questions in a press conference held on January 22. CEOs Stéphane Pallez and Nils Andén highlighted Kindred's pivotal role in the European gambling sector and explained how it aligns with FDJ's future strategic objectives.
Strategic Shift for FDJ
FDJ's move to acquire Kindred follows two significant acquisitions in 2023: ZEturf and Premier Lotteries Ireland. Ed Birkin, a senior analyst at H2 Gambling Capital, noted that FDJ is expanding beyond its traditional monopoly, marking a major shift in its strategy.
Kindred's Appeal
Kindred's unanimous recommendation to its shareholders to accept the bid has solidified FDJ's position. The acquisition provides FDJ with access to new products, particularly in the lucrative igaming sector, and entry into new markets. Kindred's presence in Western Europe and access to igaming technologies are valuable assets for FDJ.
Future Possibilities
The acquisition raises questions about the potential merger of FDJ's existing assets, such as Sporting Group, with Kindred's in-house sportsbook. Birkin believes it provides flexibility and extra options for FDJ's future plans.
A Strategic Move
FDJ's offer of SEK130 per share represents a 24.4% increase over Kindred's share price on January 19. While some may question the value, it appears to be more about strategic positioning than a straightforward value buy, according to Birkin.
Towards European Gambling Dominance
FDJ's long-term goal is to become a "European gambling champion" with an extensive portfolio and improved technological platforms. This acquisition positions FDJ as a significant player in Western Europe, signifying a meaningful shift from its previous role as a French monopoly operator.
Unique Opportunity
Birkin acknowledges the uniqueness of this acquisition, as opportunities of this scale are rare in the industry. FDJ's strategic move into Kindred Group marks a transformative moment, opening up new horizons for both companies in the European gambling market.
