FDJ completes €2.5bn acquisition of Kindred Group

La Française des Jeux (FDJ) has completed the €2.5bn (£2.1bn) acquisition of Kindred Group, with the combination of the two entities creating one of Europe’s top three largest gambling firms.

As the acceptance period for FDJ’s offer closed yesterday, 2 October, France’s state-owned lottery and gambling powerhouse now owns 91.77% of Kindred Group.

FDJ confirmed 195,659,291 Kindred Swedish Depository Receipts (SDR) or 90.66% of Kindred’s capital, were tendered at SEK130 (£9.61) a share.

FDJ also acquired 2.4 million SDRs from major Kindred shareholder Veralda earlier this year, equating to 1.11% of the group’s capital.

Settlement for Kindred shareholders that have tendered their SDRs will take place on 11 October, with FDJ implementing a “squeeze-out procedure” on the Nasdaq Stockholm.

Those investors yet to tender their shares will be given until 18 October to do so on the same terms as the initial offer.  

As per of the terms of the deal, FDJ was required to control more than 90% of Kindred’s share capital for the transaction to proceed.

FDJ said the deal would create a “European champion with a diversified and balanced profile, based on monopoly activities, primarily lotteries, in France and Ireland, and on online sports betting and gaming activities open to competition in Europe”.

According to FDJ, the combined group will generate around 26% of its revenue internationally, while its online gaming operations in competitive markets would account for around 27% of its overall business.

The French operator also noted that Kindred’s online presence, led by flagship brands Unibet and 32Red, would drive its FDJ’s revenue from online operations up from 12% to 34% for the combined group.

In terms of the new operating model, FDJ said its existing French monopoly on lottery and point-of-sale sports betting would represent approximately 64% of the business’ projected 2025 revenue.

A further 30% would come from Kindred’s B2C operations and its Relax Gaming B2B arm, along with FDJ’s existing online sports betting, poker and horseracing business.

Premier Lotteries Ireland and the group’s B2B lottery operations would drive 4% of the company, with the remaining 2% coming from its payment and services arm.

In terms of fiscal projections for 2025, FDJ said Kindred will have an “accretive impact on combined group growth” including a yearly acceleration in revenue growth by more than 50 basis points.

FDJ also laid out its core reason for pursuing the Kindred Group acquisition, namely more than three million active customers across Europe and Australia and 2023 gross gaming revenue (GGR) of £1.2bn.

The French firm said Kindred Group had established itself a top five online betting and gaming operator in Western Europe, while it is active in seven of the region’s top 10 markets.

FDJ also highlighted the in-house Kindred Sportsbook Platform (KSP) as a key benefit, with Kindred developing the in-house solution as it looks to come off of Kambi’s tech stack in 2026.

The KSP moved into live testing in smaller markets earlier this year, with FDJ committing to full deployment in 2026.

FDJ said: “The KSP project is crucial as it enables high product quality and differentiation while adding to the group’s scalability and long-term profitability. Hence, the failure of the KSP project could have a negative impact on Kindred’s expected results.”

As part of the initial offer, Kindred Group will exit Norway, as it does not hold a local licence, with FDJ doubling down on the duo’s aligned views on CSR and responsible gambling.

FDJ noted: “The combined group will operate only on markets that are locally regulated or on the path of becoming regulated, meaning that the group is going to exit all of the markets on which it operates on a non-locally regulated basis.

“FDJ and Kindred are the sole gambling operators having committed themselves with clear objectives to reduce part of their revenues from high-risks players.”

The transaction was given the green light by the French competition authority last month, after monopoly concerns were assuaged, with FDJ then bringing forward the acceptance window to 2 October from the previous 19 November deadline.

FDJ had initially made the public tender offer back in February.

Stéphane Pallez, FDJ CEO and chair, declared the transaction would create a “new European champion”.

Pallez said: “I am delighted to announce today the acquisition of Kindred, a leading European player in the competitive online betting and gaming sector.

“Kindred has strong brands, recognised technological excellence and an attractive growth and profitability profile, all of which will bolster FDJ’s strengths.

“The two groups also share high standards for responsible gaming and a business model that combines performance and responsibility.

“This acquisition creates a new European champion that intends to pursue its strategy of sustainable and profitable growth for the benefit of all its stakeholders,” she added.