Feb 23 / 2017
Latest News / Deals/

Kindred makes a £175m takeover bid for 32Red

Malta-based online Swedish gaming and sports betting company Kindred Group has agreed to buy the smaller UK rival award-winning online casino 32Red for £175.6, the latest deal in a wave of betting industry consolidation.
Kindred, formerly known as Unibet, will pay 196 pence per share which is 16% above the latest closing price of 172 pence. A second interim dividend of 4p per share will be paid by 32Red and not Kindred. Over the last few weeks, share prices for 32Red have surged with takeover speculations.

The last acquisition made by Kindred Group was back in 2015 with the purchase of StanJames.com which in turn made them one of Europe’s biggest online gambling providers. The group has more than 15 million customers across 100 markets with Europe and Australia considered their core regions.

Founded in 2002, the Gibraltar-based casino who is listed on London’s Aim market has grown quickly within the past few years with around 125 employees based in Gibraltar. They operate online casino, online poker, online bingo and online sports betting under the brands 32Red.com, 32RedPoker.com, 32RedBingo.com and 32RedSport.com.

Confirmation of accepting the offer has already been given by the shareholders who hold a combined 71.1% stake in 32Red. The offer is conditional upon Kindred gaining acceptances of more than 75%.

Kindred Group Chief Executive Officer Henrik Tjaernstroem said: “We’re optimistic we will be over 75 percent in a short space of time.”

32Red’s CEO Ed Ware had this to say about the acquisition: “We have consistently and profitably grown 32Red’s market share in the regulated markets of the UK and more recently, Italy,” 

“The management team at Kindred have a similar business philosophy to our own and we look forward to joining forces with Kindred and continuing our successful growth within the Kindred group.”


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