32Red Poker Acquired by Kindred Group
This was published 25-02-201732Red.com, the London-listed parent company of the popular UK online poker site, 32Red Poker, has been acquired by the Kindred Group, it was announced recently. Under the terms of the £175.6 million takeover deal, the Swedish gaming group, Kindred will pay 32Red shareholders 196 p for each share. They will also receive a second interim dividend of 4 p per share, (paid for by 32 Red and not Kindred).
The latest acquisition is considered almost a done deal, with nearly all shareholders giving their irrevocable undertakings to accept the offer. Kindred, which operates Unibet Casino and a number of other gaming sites, needs to receive 75% acceptances for the deal to be finalized.
Kindred Group Chief Executive Officer Henrik Tjaernstroem said: “We’re optimistic we will be over 75 percent in a short space of time.”
The CEO added that the acquisition of 32Red was consistent with Kindred’s multi-brand strategy and stated desire to grow its business in locally regulated and soon to be regulated markets.
“32Red is a high quality, customer-focused business with a similar culture to Kindred Group’s and we are delighted to welcome 32Red and its team into the Kindred family and look forward to further developing the brand going forward,” he concluded.
32Red Plc has experienced tremendous growth in the past few years, and especially over the last six months, thanks in part to its successful 32Red Casino and 32Red Poker platforms. In the six months to June 30, 2017, sales for 32Red rose by nearly two-thirds to £30.4 million.
Kindred, once known as the Unibet Group, boasts more than 15 million customers from around the world, with Europe and Australia being its main markets. Kindred is considered to be one of the world’s largest betting and gaming companies, especially after it purchased Stan James’ online business in 2015, as well as iGame.
32Red bosses are set to make quite a killing from the acquisition of the group. The chief executive of 32Red, Ed Ware (formerly of Ladbrokes), has a 23% stake in the company, which is now worth an impressive £38 million. 32Red’s chairman, David Fish, will make £18 million from the sale.
According to Ware, “The management team at Kindred have a similar business philosophy to our own.”
As soon as news broke about the potential takeover, shares for 32Red Plc jumped on the London stock exchange, with share prices climbing 16% to 200 p.
Ed Ware has not commented on whether or not he will continue to work at 32Red after the takeover comes into effect.
