Buying the remaining 66.6% of shares
Kindred Group is acquiring the remaining outstanding shares of Relax Gaming for €295m ($349m) following an agreement with the B2B iGaming software supplier.
Along with issuing an official press release on Friday, the online gambling operations group took to Twitter to announce the deal:
Kindred has had an investment in Relax Gaming since 2013 and will now be purchasing the remaining 66.6% of shares. The implied valuation for Relax Gaming as a result of this deal is €320m ($378.6m).
Kindred Group’s share price was up more than 6.5% during afternoon trading following the announcement of this agreement.
Continual investment in Relax Gaming
As part of the new deal, Kindred will be paying an initial consideration in cash worth about €80m ($94.65m) following the completion of the agreement. The maximum earn-out payments total €113m ($133.7m) and could become payable in 2022 and 2023, depending on Relax Gaming hitting specific earnings thresholds. Kindred will be using its existing credit and cash facilities to fund this deal.
broadening the customer base and enhancing the product offering
Kindred will keep investing in Relax Gaming’s business by broadening the customer base and enhancing the product offering. All of the current Relax Gaming employee share option programs will be exercised, with the company’s management being able to keep 7% ownership.
The management team at Relax Gaming will remain in place and CEO Tommi Maijala will stay in his current role. Kindred Group hopes to achieve synergies worth €8m ($9.5m) annually within the coming three years.
A useful purchase
In the purchase agreement announcement, Kindred Group CEO Henrik Tj?rnstr?m said Relax Gaming is a “rapidly growing and profitable B2B business with a world-class product portfolio, giving us greater control over our casino, poker and bingo offering.” He added that the acquisition puts Kindred in a much better position to execute on its long-term plan to provide plenty of product differentiation and to enhance the customer experience.
Kindred Group was already Relax Gaming’s biggest shareholder before this latest agreement, already owning 33.4% of outstanding shares.