Kindred bolsters UK presence through 32Red purchase

Kindred bolsters UK presence through 32Red purchase

Friday, June 9, 2017 Posted by Luke Massey
Kindred Group has completed a £175.6 million acquisition of 32Red Plc

32Red will deliver a “significant presence in the UK”, after the UK Gambling Commission approved Kindred’s acquisition of the online casino-focused company with effect from 6 June.

First announced in February of this year, Kindred Group has now completed the £175.6 million acquisition of 32Red Plc, which includes over 97% of the company’s outstanding shares. The Stockholm-listed gambling group will also exercise its right to procure the delisting of 32Red from the AIM Market of the London Stock Exchange.

Ed Ware, 32Red CEO, told TotallyGaming.com: “32Red has continued to grow faster than the market and this acquisition delivers a significant presence in the UK for Kindred.

“Our UK centricity and focus on the remote casino market is a great strategic fit with Kindred’s international portfolio. I believe we complement the existing operations the group has in place, both territorially and from a product perspective.”

Kindred Group has estimated transaction related costs for the deal to be £4.6 million, of which £600,000 have been recognised in Q1 2017. Amortisation of acquired intangible assets will start in Q2 2017 and is estimated at £7-8 million per year over the coming three years.

Meanwhile, having upgraded its sportsbook solution ahead of the FIFA World Cup in 2014, Ware admitted that 32Red’s strength remains in delivering a casino experience, while acknowledging that Kindred Group has other brands better placed to take on the sports betting market.

“Our expertise, reputation and ambition has always been around delivering the best remote casino experience in the sector,” Ware continued.

“Whilst we have pretty much always offered sportsbetting under the 32Red umbrella, it has been more of a defensive play rather than an attempt to take on that segment of the market. Obviously, our colleagues at Kindred have great strength in sports betting via Unibet.”

Totally Gaming says: In his Q1 update, Kindred Group CEO Henrik Tjärnström hailed the purchase of 32Red as a top tier online casino asset to complement its portfolio of sports betting brands. The deal will give the group an increased presence in the UK casino market, with 32Red committed to delivering the best remote experience in the sector.

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