The operator has held a 33.4% stake in Relax since 2013, but announced in July that it would buy out the remainder of the company. The €295m payment is split into an initial consideration of €80m, plus two earn-out payments capped at €113m and payable in 2022 and 2023. The earn-out consideration is subject to Relax meeting certain earnings targets.
“The acquisition accelerates Kindred’s strategy to increase its focus on product and customer experience by strengthening Kindred’s product control and product differentiation capabilities,” Kindred’s board said.
The operator added that it expected synergies of roughly €8m per year from the deal for the first three years.
Kindred will keep Relax as an independent subsidiary within the wider group, with founder Patrik Österåker remaining as its chairman.
The operator says the deal values Relax at €320m on a cash- and debt-free basis.
Today, Kindred also announced that it would block customers from the Netherlands, in a move that it said would reduce earnings by £12m per month – or £144m per year – before mitigating factors.
The business said it still believes it should be legally permitted to accept Dutch customers, provided it does not specifically target them. However, it will not permit any to gamble or deposit until it receives further clarification from Dutch authorities.
The announcement came as the regulated Dutch online gambling market opened today.