French gaming conglomerate FDJ set to acquire Kindred in a €2.45 billion deal
In a significant move for the online gambling industry, French gambling giant La Française des Jeux (FDJ) has made a takeover offer of SEK 279.51 million (€2.45 billion) for Maltese online casino operator Kindred. The offer, which values each Kindred share at SEK 130 (€11.41), has been unanimously recommended by the Kindred board and has already received the support of five major shareholders, who together hold 27.9% of the shares.
The acquisition, if successful, would result in a stronger strategic position for FDJ and provide greater benefit to shareholders and stakeholders. FDJ's CEO and chairman, Stéphane Pallez, stated that Kindred offers an attractive growth profile and is a strong, leading brand. The aim is to expand FDJ's offer for Kindred to give the group a diversified and balanced profile based on several pillars.
However, the takeover is not without its challenges. The integration of Kindred's operations into FDJ's structure could prove complex, and maintaining growth momentum, especially following tough comparisons to 2024 financial results, may be a hurdle. Revenue dips in Kindred’s half-year results might signal integration or market adaptation issues, requiring careful management to realize synergies and sustain profitability.
The acquisition is subject to certain conditions, including obtaining at least 90% acceptance from shareholders, obtaining necessary approvals, and avoiding events that significantly weaken Kindred's financial position. No misleading information about the takeover should be published by the parties involved. The acceptance period for the offer begins on February 20 and ends on November 19.
Kindred has been in crisis for some time due to issues with its subsidiary Trannel being prohibited from offering online gambling in Norway. This led to the company being forced to withdraw from the Norwegian market and bear the legal and procedural costs following a final ruling in June 2023. In November 2023, Kindred announced its intention to withdraw from North America and lay off 300 employees.
The potential benefits for FDJ from the acquisition include substantial revenue growth and market expansion. After completing the acquisition, FDJ United (the merged group) reported a significant 30.7% year-on-year increase in revenue during H1 2025, reaching €1.87 billion, reflecting strong performance and enhanced scale in the gaming and lottery sectors. This suggests the deal boosts FDJ's market presence and diversifies its offerings.
In summary, the takeover offers FDJ substantial financial and operational upsides, but also presents integration and financial risks. The success of the acquisition will depend on FDJ's ability to manage these challenges and realize the potential benefits. It remains to be seen whether Kindred's shareholders will approve the offer in the coming months.
References
- FDJ Submits €2.45 Billion Takeover Offer for Kindred
- FDJ Aims to Expand Its Offer for Kindred
- Kindred Confirms FDJ Takeover Offer
- Kindred's Half-Year Results Suggest Integration Issues
- FDJ United Reports Strong Performance in H1 2025
What challenges might FDJ face in integrating Kindred's operations into their existing structure, and how could this affect the success of the acquisition?
In the context of finance and business, if the acquisition goes through, the impact on FDJ's revenue and market presence could be significant, but maintaining growth momentum and addressing potential integration issues might pose hurdles.
