Kindred Acquires Relax Gaming in €295mn Deal

Online gambling operator Kindred Group last week announced that it would acquire the remaining 66.6% of the outstanding shares in online casino content maker and supplier Relax Gaming in a deal that values the latter company at up to €320 million.

Kindred said it would pay up to €295 million for the outstanding shares. The operator is set to pay an initial consideration of approximately €80 million on a cash and debt free basis.

In addition, Kindred will make two earn-out payments of up to €113 million in 2022 and 2023, subject to Relax meeting certain earnings targets. The transaction will be financed through the gambling operator’s existing cash and credit facilities, it also became known.

Kindred has been investing in Relax since 2013. Prior to this recently announced deal, the operator was the provider’s largest investor holding 33.4% of its outstanding shares.

Founded in 2010, Relax is an established creator and supplier of content for the online casino industry. Its aggregation platform features thousands of proprietary and third-party titles from some of the sector’s leading B2B firms.

Relax currently has around 240 full-time employees and four main hubs in Malta, Estonia, Sweden, and Serbia. The company provides its in-house and aggregated content to hundreds of brands across multiple markets.

Transaction to Give Kindred Greater Control over Its Own Offering

Kindred has also long been a Relax client. The provider currently provides the operator with poker and bingo content on an exclusive basis, along with online casino content. Kindred said that the acquisition of the supplier is anticipated to generate annual run-rate synergies of €8 million within the next three years, primarily driven by lower investment needs and reduced cost of sales.

The multi-brand gambling firm further noted that with the addition of Relax, they will be able to further develop their own proprietary product portfolio and thus increase its focus on product and customer experience.

Commenting on their latest big news, Kindred CEO Henrik Tjärnström said that the acquisition will put his company in a “significantly better position to achieve our long-term strategy to increase our focus on product differentiation and customer experience.”

Relax Gaming co-founder and Chairman Patrik Österåker said that joining Kindred comes as a natural next step in their long-standing cooperation with the operator across all their product verticals. The official noted further that Kindred’s strengthened presence will allow the provider to further invest in and accelerate the expansion of its offering across the globe.

After the closure of the transaction, Relax will continue to operate as an independent entity with a separate Board of Directors and management team. The deal is expected to close in the fourth quarter of the year, subject to regulatory approvals.

Source: Kindred acquires Relax Gaming to strengthen its focus on product differentiation and customer experience, PR Newswire, July 2, 2021

The post Kindred Acquires Relax Gaming in €295mn Deal appeared first on Casino News Daily.