Kindred Group, a multi-national online casino, and sports betting operator, announced in June that it has secured a gaming license in the Netherlands. At the end of the same month, the company’s Unibet brand signed a contract with AFC Ajax.

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Notable Buyers on the Prospective Buyers List

Currently, the organization is reportedly examining many viable selling alternatives. Giants 888 and Entain might potentially sign a contract with Kindred. A few months ago, Corvex Management became the second-largest stakeholder in the organization.

 Evert Carlsson, chairman of Kindred, initially resisted the notion, claiming confidence in the brand’s expansion plan. The Kindred board seems to have evaluated many potential purchasers. The list includes prominent industry names like 888, Entertain, and Tipico. 

A handful of private equity firms, such as Blackstone and Apollo Global, round out the list. Evidently, Kindred has not yet selected an appropriate moniker to explore the possibility. 

According to the operators interested in the proposed purchase agreement, Kindred was unable to correctly modernize its business strategy in response to the ongoing regulation of global markets. Therefore, none of the previously named operators saw the organization as an attractive acquisition target. 

Kindred’s current share price is SEK77.66 ($7.59). This results in a market valuation of SEK17.64 billion ($1.7 billion) for Kindred. In 2021, the company’s profits before interest, taxes, depreciation, and amortization reached $113,2 million, representing about one-fifteenth of its market capitalisation.

Additional Progress May Be Required

While Kindred has prioritized entering more regulated areas in recent years, greater progress and management adjustments may be required. The amount of the transaction, which would require operators to increase their debt and prohibit them from moving further, is a further factor working against a prospective takeover. 

Regarding the private equity industry, such a purchase would result in significant regulatory complications associated with the ownership of such a big gaming operation. In addition, the group’s efforts to develop its own sportsbooks seem to have increased the anxiety voiced by possible purchasers. 

While the likelihood of a sale occurring in the near future is low, Corvex Management may decide to take further efforts to expedite a transaction by requesting a management change or encouraging the board to make an acquisition. However, none of these measures could ensure a future transaction with any of the operators.

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