FDJ Operator Plans to Acquire Kindred Group for $2.6 Billion

French national gambling operator Française des Jeux (FDJ) is looking to acquire the major iGaming company Kindred Group for €2.6 billion (approximately $2.8 billion). This offer represents a staggering 10.9 times Kindred's projected EBITDA (earnings before interest, taxes, depreciation, and amortization) for 2023.
The board of directors at Kindred has unanimously endorsed the acquisition, which has also received the backing of five major investors—Corvex Management, Veralda Investment, and others—who collectively hold 27.9% of Kindred's shares. The deal is subject to several conditions, including regulatory approvals and acceptance by 90% of shareholders. If these conditions are met, the acquisition process is set to begin on February 20 and will take approximately nine months to complete.
Stéphane Pallez, Chair and CEO of FDJ Group, stated that acquiring Kindred would provide the group with a diversified and balanced profile based on several principles. She highlighted FDJ's role as a monopoly in the lottery sector, as well as its operations in casinos and sports betting. "The merger will lead to a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders," Pallez added.
Kindred has indicated that there are currently no plans for significant changes to the workforce or management structure of either company as a result of the acquisition. It also stated that the deal should not affect the hiring conditions for new employees or the location of its business operations.
Nils Andén, CEO of Kindred, remarked that the transaction would create a leading European gaming operator with the financial and strategic capabilities to further expand its global presence. He added that the merger with FDJ would help accelerate the implementation of long-term projects, continue growth in key markets, and provide customers with a reliable source of entertainment.
Meanwhile, Pennsylvania's gambling revenue for 2023 has reached a record high of $5.7 billion.