Kindred completes £175m 32Red acquisition
Great Britain’s Gambling Commission gives thumbs up to deal which will bolster Kindred’s UK-facing portfolio
Kindred Group has completed its £175.6m acquisition of 32Red after Great Britain’s Gambling Commission finally gave its blessing to the deal.
The transaction, which was first announced in February, will boost Kindred’s exposure to the UK, with the bulk of 32Red’s £58.5m 2016 revenues derived from the market.
Kindred Group said it had received acceptances, or had otherwise acquired, more than 97% of 32Red’s outstanding shares and would now exercise its right to acquire the remainder.
The operator will also delist 32Red from the AIM Market of the London Stock Exchange.
“The acquisition of 32Red is consistent with our multi-brand strategy and stated desire to grow our business in regulated and soon to be regulated markets,” Henrik Tjärnström, CEO of Kindred Group, said when the deal was first announced in February.
“32Red is a high quality, customer-focused business with a similar culture to Kindred’s and we are delighted to welcome 32Red and its team into the Kindred Group and look forward to further developing the brand going forward.”
Speaking to EGR Intel this morning, 32Red CEO Ed Ware said: We have been made to feel very welcome by the Kindred team and our main focus is to continue to grow the business – as usual.”
Total transaction-related costs are estimated to be £4.6m, of which £600,000 have already been recognised in Kindred’s Q1 2017 results with £3.2m to be included in its Q2 2017 balance sheet.
The firm said the remainder would be recognised from Q3 2017 until Q4 2019.
Kindred’s share price was stable this morning at SEK91.40 at the time of writing.