Kambi, a leading provider of sports betting solutions, has successfully repaid a €7.5m ($8.2m) convertible bond that it issued to Kindred in 2014. This repayment was a crucial requirement for Kambi, as per the spin-off agreement from Kindred in 2014, contingent on Kambi reaching specific financial conditions. With the bond now fully paid, Kambi gains increased autonomy in decision-making, and Kindred relinquishes its ability to convert the bond into shares, thereby reducing its influence on Kambi. The repayment marks an important milestone in their ongoing partnership, which was renewed in 2022 and is set to continue until 2026.
Enhanced Partnership and Financial Independence:
The repayment of the convertible bond allows Kambi to operate more independently, no longer requiring consent from Kindred for certain events. Previously, Kindred had the option to convert the bond into shares, which could have potentially granted it greater influence over Kambi’s operations. However, with the bond now settled, Kambi can make strategic decisions autonomously, ensuring its long-term growth and flexibility. This development reinforces the trust and collaboration between Kambi and Kindred, solidifying their symbiotic partnership.
Extended Partnership and Future Prospects:
The enduring partnership between Kambi and Kindred, which began in 2014 and was extended in 2022, remains unaffected by the bond repayment. The recent contract extension, valid from 2024 until the end of 2026, highlights the strong bond between the two companies. Kambi’s CEO and Co-founder, Kristian Nylén, expressed enthusiasm for the continued collaboration, emphasizing the shared commitment to providing modularized technology and services that support both companies’ evolving strategies. This extension sets the stage for further growth and mutual success in the rapidly evolving sports betting industry.
Kindred’s Strategic Review:
In parallel news, Kindred has announced the initiation of a strategic review, exploring potential merger or acquisition opportunities. To facilitate this process, Kindred has engaged renowned financial advisors and investment banks, including PJT Partners, Morgan Stanley & Co. International plc, and Canaccord Genuity. The review underscores Kindred’s proactive approach to identifying avenues for future growth and maximizing shareholder value. While the outcome of this review remains uncertain, Kindred’s focus on strategic exploration reflects its commitment to staying at the forefront of the industry.
Kambi’s successful repayment of the €7.5m convertible bond to Kindred not only fulfills the conditions set forth in their 2014 spin-off agreement but also reinforces their enduring partnership. With enhanced financial independence, Kambi gains greater control over its operations and decision-making. Simultaneously, Kindred’s consent is no longer required for certain events, enabling Kambi to navigate the dynamic sports betting landscape more nimbly. The extension of their partnership until 2026 further cements their shared vision and commitment to delivering cutting-edge technology and services. As Kindred embarks on a strategic review, the future holds promising prospects for both Kambi and Kindred, as they seek to capitalize on emerging opportunities in the industry.