Kindred acquires smaller UK rival 32Red

Swedish online gaming company, formerly known as Unibet, Kindred Group has reached an agreement to acquire its smaller UK rival. online gaming operator 32Red for £175.6m.

The two companies announced the acquisition this morning to the London Stock Exchange as the takeover continues a surge of merger and acquisition activity across the gaming industry.

This will be the first acquisition deal Kindred has been a part of since the Stan James takeover in 2015.

32Red's shares soared in the last three weeks surrounding takeover speculation, rising 16% to 200p in early London trading today.

The recommended cash offer to acquire the entire share capital of 32Red is valued at 196p per share, with shareholders also due to receive a second interim dividend of 4p per share on March 23. The offer represents a premium of 16.3% on 32Red’s closing share price yesterday.

Henrik Tjärnström, CEO of Kindred Group comments: “The acquisition of 32Red is consistent with our multi-brand strategy and stated desire to grow our business in regulated and soon to be regulated markets.

“32Red is high quality, customer-focused business with a similar culture to Kindred’s and we are delighted to welcome 32Red and its team into the Kindred Group and look forward to further developing the brand going forward.”

Ed Ware, CEO of 32Red adds: “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 forced with Kindred and continuing our successful growth within the Kindred Group.”

The group has already received confirmation from shareholders who hold a combined 71.1% stake in 32Red that they will accept the offer, however the offer is conditional upon Kindred gaining acceptance of more than 75%.