Kindred Group has confirmed that it has signed an agreement to acquire the remainder of Relax Gaming shares under its own roof as the company is determined to finalize the acquisition of the B2B igaming supplier. The deal is estimated at EUR 320 million for the full 100% value of the shares on a cash-free and debt-free basis, the company explained in a press release.
The company has held a stake in casino, bingo, and table games supplier Relax Gaming since 2013, but the buyout of the outstanding shares will add another 66.6% of the total stake to Kindred’s own portfolio, effectively giving the company full control over Relax Gaming as the two companies have agreed to this partnership in a bid to seek further strength and better positioning in the igaming industry.
What Motivates Kindred’s Acquisition of Relax Gaming?
Kindred is gaining control over Relax Gaming’s outstanding assets in a bid to ensure that it can continue to grow its footprint in various markets in the igaming industry. As an established B2B name in the segment, Relax Gaming has the development know-how, connections and customer base to complement Kindred’s existing portfolio.
The deal, which is subject to final regulatory approval, will be carried out via additional payments earmarked for 2022 and 2023, should Relax Gaming be able to achieve certain agreed-upon earnings thresholds.
Relax Gaming’s flagship product is its open distribution platform that allows third-party aggregation. The company is equally well-represented in the poker and bingo products. Today, the company has 240 full-time employees and it operates out of Estonia, Malta, Sweden and Serbia.
Commenting on this move, Kindred Group CEO Henrik Tjärnström said:
“Through this acquisition we add a rapidly growing and profitable B2B business with a world-class product portfolio, giving us greater control over our casino, poker and bingo offering, putting Kindred in a significantly better position to achieve our long-term strategy to increase our focus on product differentiation and customer experience.”
He was joined by Relax Gaming chairman of the board and co-founder Patrik Österåker, who added that the opportunity to join Kindred Group is a natural step in the long-standing partnership between the two companies. “Our continued independence is a key element of the transaction, and I am happy to remain on the board of Relax Gaming,” he explained.
Kindred Group has been busy throughout the year with the igaming operator managing to launch its Unibet brand in Virginia and introduce mobile sports betting. Kindred continues to build momentum in sports betting in North America through the Unibet brand, which is hailed as a leader in both the European and US markets. The company also reported a far smaller revenue share from problem gambling as the company revisits its practices to ensure the highest standard of customer care.
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