Kindred, the operator of Unibet, has reached an agreement to acquire online gaming operator 32Red for £175.6m (€207m/$219m), the two companies announced this (Thursday) morning to the London Stock Exchange.
The recommended cash offer to acquire the entire share capital of 32Red is valued at 196p per share, with shareholders also due to receive a second interim dividend of 4p per share on March 23. The offer represents a premium of 16.3 per cent on 32Red’s closing share price yesterday.
32Red’s directors, who have been advised by Numis, will unanimously recommend that the “fair and reasonable” bid is accepted.
Kindred, which used to be called Unibet Group, acquired Stan James and iGame in 2015 and is one of Europe’s leading online gambling providers.
“We have consistently and profitably grown 32Red's market share in the regulated markets of the UK and more recently, Italy,” 32Red chief executive Ed Ware said.
“The management team at Kindred have a similar business philosophy to our own and we look forward to joining forces with Kindred and continuing our successful growth within the Kindred Group.”
Kindred chief executive Henrik Tjärnström added: “The acquisition of 32Red is consistent with our multi-brand strategy and stated desire to grow our business in regulated and soon to be regulated markets. 32Red is a high quality, customer-focused business with a similar culture to Kindred's and we are delighted to welcome 32Red and its team into the Kindred Group and look forward to further developing the brand going forward.”
Related article: 32Red breaks net revenue record in 2016