Kindred Group acquires Relax Gaming
Kindred Group has signed an agreement to acquire the remaining 66.6% of the outstanding shares in Relax Gaming.
The transaction values the company at up to €320m ($378.9m) on a cash and debt free basis, and a total value of the outstanding shares of approximately €295m.
Kindred will pay an initial consideration of €80m in cash upon closing on a cash and debt free basis, alongside a maximum potential earnout of €113m payable in 2022 and 2023, subject to Relax achieving certain earnings thresholds.
The transaction will be financed through Kindred’s existing cash and credit facilities, with the company having been invested in Relax Gaming since 2013.
“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”, said Kindred Group CEO Henrik Tjärnström (pictured).
The transaction is conditional to customary regulatory approvals, and is expected to be completed in the fourth quarter of 2021. J.P. Morgan and Cirio Advokatbyrå have acted as financial and legal advisors respectively to Kindred, while Roschier Attorneys Ltd acted as legal advisor to the Relax shareholders.
Patrik Österåker, Co-founder and Chairman of the board at Relax Gaming, commented: “Joining Kindred Group comes as a natural next step in our long-standing cooperation with Kindred across all our product verticals. Kindred’s strengthened presence will allow Relax Gaming to further invest in and accelerate the expansion of our B2B offering across the globe.
“We will continue the Relax Gaming journey as a separate B2B entity with unchanged product portfolio and overall strategy, staying true to our values and respecting the hard-earned trust of our customers. Our continued independence is a key element of the transaction, and I am happy to remain on the board of Relax Gaming.”
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