Kindred Group, one of the fastest growing online gambling operators in Europe, revealed that it has reached an agreement for a recommended cash offer for the British online casino company 32Red. As announced by Kindred, which in the past was known as Unibet, the Boards of the two companies agreed on the terms of the offer under which Kindred Group is to acquire all current and future assets of 32Red.
The acquisition bid has estimated 32Red at £175.6 million. The takeover deal comes in line with the multi-brand strategy of Kindred Group, which is aimed at expanding the company’s reach and consolidating its presence in the online casino market of the UK.
The Chief Executive Officer of Kindred Group Henrik Tjärnström commented on the agreement, explaining that the acquisition of 32Red complemented the Group’s strategy and came as a proof of Kindred’s willingness to expand its business in local regulated markets. He praised the qualitative products and services provided by 32Red, saying its culture and policy was similar to the ones of Kindred, which made the brand a perfect addition to the latter’s family of brands.
The recommended cash offer is meant to come into effect as an acquisition offer under the relevant laws of Gibraltar. As part of the offer, the investors of 32Red will get the prize of £1.96 per share. They will also be entitled to get a second interim dividend amounting to £0.04 per share.
What Is to Follow?
If the 32Red acquisition is completed and Kindred Group takes over the British online casino company’s assets, the deal is expected to seriously reshuffle the layers of the UK gambling industry, especially in terms of online operations. The deal is to undoubtedly result in greatly expanding the current market share of Kindred Group, making it one of the major players at the online casino and gaming arena.
32Red, which was officially established in 2002, is currently based in Gibraltar. The company is one of the largest and most successful British online casino companies, and operates in the sphere of online casino, sports betting, poker and bingo under a number of brands, including 32Red.com, 32RedSport.com, 32RedPoker.com and 32RedBingo.com. Up to date, the brand operates not only on the territory of the UK and Gibraltar, but also in Italy. It has also been seeking to expand its presence, and as part of this strategy acquired the online casino business of Roxy Palace two years ago.
Previously, 32Red has revealed that its Net Gaming Revenues (NGRs) amounted to £48.7 million, and its EBITDA was estimated to £5.2 million over the fiscal year which ended on December 31st, 2015. At the beginning of February 2017, the Gibraltar-based company issued a Trading Update for its full-year performance in the period from January 1st to December 31st, 2016 saying that its Net Gaming Revenues amounted to £62.3 million.
What is more, the brands operated by 32Red would be added to its portfolio, providing Kindred Group with the opportunity not only to expand its product suite with high-quality products, but also to reach more customers in the UK, Gibraltar and Italy.
The transaction, of course, would not be completed until it meets certain conditions imposed by the relevant regulatory authorities.
- Author
Olivia Cole
