La Française des Jeux (FDJ), France’s national lottery and gaming operator, has made significant strides in its pursuit to acquire Kindred Group, a leading European online gambling operator. After securing final approval from the French Competition Authority, FDJ announced that it would expedite the acceptance deadline for its public offer to purchase Kindred. Initially set for November 19, 2024, the deadline has now been moved to October 2, 2024, at 17:00 CEST. This move reflects FDJ’s eagerness to capitalize on the acquisition and integrate Kindred’s valuable assets into its own operations.
This development marks a critical point in FDJ’s strategic expansion beyond its traditional lottery offerings into the broader, fast-growing sectors of online gambling and sports betting. The acquisition, which has a total value of SEK 130 per Swedish Depository Receipt (SDR)—approximately $12.77—has been in the works since January 2024, with FDJ making a compelling cash offer to Kindred shareholders.
Key Approvals and Final Regulatory Clearance
Regulatory hurdles are a common feature of any significant acquisition in the gambling sector, particularly when it involves large, cross-border companies. In FDJ’s case, the acquisition was contingent on a series of regulatory clearances. The French Competition Authority’s approval in September 2024 marked the final piece of the puzzle, allowing the French gaming giant to move forward with its revised timeline.
FDJ had initially laid out clear conditions for the acquisition, which included securing the necessary approvals from relevant regulatory bodies in both France and other jurisdictions where Kindred operates. With these clearances now fully in place, FDJ can accelerate its plans to finalize the acquisition and begin integrating Kindred’s operations into its portfolio.
Securing Major Shareholders’ Commitments
One of the pivotal aspects of the acquisition is FDJ’s goal of obtaining more than 90% ownership of Kindred’s total shares on a fully diluted basis. This threshold is essential for FDJ to gain full control over Kindred’s assets and operations. As of the latest update, FDJ has already secured significant support from five major Kindred shareholders, who collectively represent 26.72% of the company’s outstanding SDRs.
These key stakeholders, including Corvex Management LP, Premier Investissement SAS, Eminence Capital, Nordea, and Veralda, have made irrevocable commitments to tender their shares in response to FDJ’s offer. This backing substantially strengthens FDJ’s position in reaching the required shareholding threshold. Additionally, FDJ had earlier purchased 1.11% of Kindred’s outstanding SDRs directly from Veralda in March 2024, further solidifying its stake in the company.
If the acquisition proceeds successfully, FDJ expects the settlement and delivery of shares for shareholders who accept the offer to occur around October 11, 2024. FDJ will announce the final results of the offer on October 3, 2024, following the close of market activities.
Strategic Divestments and Focus on Core Operations
In line with its broader acquisition strategy, FDJ has taken steps to streamline its business and refocus on its core operations. In August 2024, FDJ sold its Sporting Solutions brand to Betsson Group, offloading its trading and risk management services. This sale allows FDJ to sharpen its focus on its business-to-consumer (B2C) and business-to-business-to-consumer (B2B2C) operations, particularly in the lottery and sports betting markets, where it sees significant growth potential.
The divestment of Sporting Solutions also demonstrates FDJ’s clear strategic intent as it prepares to absorb Kindred’s extensive assets and operations. By shedding non-core assets like Sporting Solutions, FDJ positions itself more effectively to concentrate on its high-growth areas, especially the digital transformation of its lottery operations and the expansion of its sports betting portfolio.
The Strategic Importance of Acquiring Kindred Group
FDJ’s acquisition of Kindred is not just a tactical move; it is a cornerstone of its broader strategy to extend its reach in the European gambling market. With Kindred’s established brands, including Unibet, 32Red, and Maria Casino, FDJ is poised to strengthen its foothold in online gaming and sports betting—two sectors that have seen tremendous growth across Europe.
Kindred’s digital platforms and well-established presence in markets such as the United Kingdom, Sweden, and Belgium align perfectly with FDJ’s ambitions of becoming a leading player in Europe. The acquisition will enable FDJ to tap into new customer segments, enhance its technological capabilities, and diversify its revenue streams beyond its traditional lottery products.
By acquiring Kindred, FDJ also gains access to valuable technology infrastructure, including advanced data analytics, customer personalization platforms, and robust responsible gambling frameworks. These assets will be instrumental in driving FDJ’s long-term vision of growth, innovation, and operational efficiency in regulated markets.
Strengthening FDJ’s International Position and Market Share
The integration of Kindred’s operations into FDJ’s portfolio represents a major leap in FDJ’s evolution as a global player. FDJ has long been recognized as a leader in the lottery sector, but this acquisition allows it to substantially expand its presence in the broader gambling ecosystem, particularly in online betting—a segment that continues to grow rapidly across Europe and beyond.
With Kindred’s strong portfolio of brands and established presence in key markets, FDJ stands to significantly enhance its international footprint. The acquisition also presents an opportunity for FDJ to increase its market share, particularly in the burgeoning online gambling and sports betting sectors, which are becoming increasingly competitive.
Moreover, FDJ’s commitment to responsible gambling will likely be bolstered by Kindred’s own strong focus on responsible gaming initiatives, providing both companies with the opportunity to further develop and implement cutting-edge responsible gambling practices.
Long-Term Vision: FDJ’s Path to Becoming a European Gambling Leader
FDJ’s acquisition of Kindred is a bold move that underscores the company’s ambition to become a dominant player in the European gambling market. This acquisition is part of a larger trend in the industry, where companies are seeking to consolidate operations and expand their reach through strategic mergers and acquisitions.
For FDJ, the acquisition is about more than just gaining market share—it’s about building a diversified and future-ready gaming portfolio. The combination of FDJ’s traditional strength in lottery services with Kindred’s expertise in digital gambling will create synergies that will propel FDJ forward as a more dynamic and diversified operator.
FDJ’s focus on growth and expansion comes at a time when the gambling industry is undergoing significant change, driven by evolving regulations, technological advancements, and shifting consumer behaviors. As FDJ continues to pursue its long-term vision, the successful integration of Kindred’s assets and operations will be a critical factor in its future success.
As FDJ nears the revised deadline of October 2, 2024, the company is poised to complete one of the most significant acquisitions in the European gambling sector. With regulatory approvals secured and a substantial portion of Kindred’s shareholders already committed to the offer, FDJ appears well-positioned to meet its ownership target of more than 90% of Kindred’s shares.
The announcement of the final results on October 3, 2024, will mark a key milestone in FDJ’s journey toward becoming a leading player in the European market. Should the acquisition proceed as planned, FDJ will begin the process of settling and delivering shares to shareholders around October 11, 2024, marking the formal close of this transformative deal.
With Kindred’s assets integrated into its portfolio, FDJ is set to enhance its international presence and grow its offerings in the fast-growing sectors of online gaming and sports betting. This acquisition is likely to reshape the competitive landscape of the European gambling industry, positioning FDJ as a key player in both traditional lottery services and the rapidly expanding digital gambling space.
As FDJ moves forward with its ambitious plans, the Kindred acquisition will serve as a pivotal moment in its evolution, providing the company with the scale, expertise, and market reach needed to thrive in an increasingly competitive industry.