France’s FDJ Makes Bid to Take over Kindred Group

FDJ, operator of France’s national lottery games, has concluded a bid to acquire an outstanding share capital of the European gambling company Kindred Group, forging one of the largest online gambling companies in Europe, reports Nseobong Okon-Ekong

La Française des Jeux, better known as FDJ, France’s leading betting and gaming operator and a leading player worldwide, is widely reported to have initiated a move to acquire European gambling company Kindred Group for about $2.5 billion.

The World Street Journal reported the takeover bid as an offer to acquire its outstanding share capital, potentially forging one of Europe’s largest online gambling companies.

A potential deal comes after Kindred Group announced last April that it was exploring strategic alternatives, including a possible sale of the company.

There was also a report in late July that MGM Resorts (MGM) was speculated to be one of the companies looking at a potential acquisition of Swedish online gambling company Kindred, according to a Betaville “uncooked” alert at the time.

It was first reported in July 2022 that Kindred was said to be exploring a possible sale following shareholder pressure on the online gambling operator, specifically from Corvex Management, the New York-based hedge fund, which has been pushing Kindred’s board since 2022 to hire a financial adviser to look at strategic alternatives, including the potential value that could be achieved via a sale or a business combination.

 Last November, FDJ completed the acquisition of Premier Lotteries Ireland, the national lottery operator, for an enterprise value of 350 million Euros ($381.40 million).

Kindred Group is one of the world’s leading online gambling operators with business across Europe, North America and Australia, offering over 30 million customers across nine brands a great form of entertainment in a safe, fair and sustainable environment. The company, which employs approximately 2,500 people, is listed on Nasdaq Stockholm Large Cap and is a member of the European Gaming and Betting Association (EGBA) and a founding member of IBIA (International Betting Integrity Association).

FDJ is the operator of France’s national lottery games and the title sponsor of the FDJ cycling team. The name of the company loosely translates as The French Company of Games. The official Lotto (called loto) and Euromillions are the most played lotteries in France in 2023. It is managed by FDJ, which is also responsible for a range of other gambling and sports betting in France.

The Group is also diversifying with the international marketing of technological solutions, developing a retail payment processing service, and a presence in other entertainment activities.

FDJ, a lottery and sports betting game operator, is owned and operated by the French government. The company offers flash games, drawing games, eSports, and sports bets. Its draw games include Euro Millions-My Million, Joker+, Loto, Keno Gagnant a vie, and Amigo. Francaise Des Jeux operates two sports betting sites, one distributed under exclusive rights through its retail network (ParionsSport Point de Vente). Another is a competitive offering distributed over the Internet under a license granted by Autorité de Régulation des Jeux En Ligne — ARJEL (expected to be replaced by Autorite Nationale des jeux – ANJ). It offers games online and a point-of-sale network. The company has partnerships with four major football clubs, namely, AS Monaco, Olympique Lyonnais, Olympique de Marseille, and FC Nantes. Francaise Des Jeux is headquartered in Boulogne-Billancourt, France.