Kindred Group completes Relax Gaming Acquisition
Following weeks of speculation, Online Gambling group, Kindred has completed the much-anticipated acquisition of Curl up Gaming, with the Swedish-based organisation buying up the rest of its shares in the third party aggregator.
Kindred can pay $95 million in this deal from a total of $350 million, which represents 66 percent of the shares. It could simply take Relax Gaming’s valuation up to $380 million overall, following the completion of the takeover.
Details of the offer mean that should Relax Gaming hit certain performance indicators, then yet another $134 million could become payable during 2022 and 2023, which will be probably be financed through Kindred’s credit facilities in addition to current cash. Beneath the terms of the agreement though, Curl up Gaming, which is really a major supplier of software to several Kindred Group brands, will remain as another entity.
CEO of Kindred Group, Henrik Tjarnstrom, was bullish about the most recent deal, stating this means an evergrowing computer software business in the market has been included with their existing portfolio, that will give them more control over their products across casino, poker, and bingo. He also emphasised the long-term potential with regards to differentiation on the market.
Why is this such a crucial deal?
Taking the ownership of a business-to-business computer software provider in the market underneath the Kindred Group brand will somewhat help to fortify the service offering of the Swedish iGaming giant.
Already, the group boasts a few of the most recognised on line gambling entities in the industry, including Unibet and 32Red, and adding a software provider of Relax Gaming’s calibre will have numerous benefits.
Whilst it is uncommon for online gambling operator businesses to also own software providers, it isn't unheard of with 888 Holdings having their particular B2B division; Dragonfish which services their brands, furthermore to others in the market.
One of the benefits is a reduction in the expense of pc software development long term for the Kindred Group brands along with any the others that they bring under their umbrella. This means that every thing technology-related, essentially stays in-house and thus, it could make things dramatically easier.
That is especially the case when it comes to efficiency. Having every thing, essentially under one entity means that everyone is for a passing fancy page and communication would have been a much more swift. This cannot be underestimated in a company and frequently is amongst the biggest benefits, specially when it comes to cost versus efficiency.
We've seen the brands underneath the 888 conglomerate reap the rewards from having their particular technology division and for that reason, the group have witnessed explosive growth over the last year or two.
What next for Kindred Group?
While the operator group is by no means the largest in the market, they truly are heavily backed and extremely ambitious when it comes to their growth plans. Their flagship brands, 32Red and Unibet are just two in a portfolio of 11, which also incorporates Maria Casino, with a substantial reputation in Europe.
Kindred Group has followed a cautious, yet strategic expansion plan over the last couple of years, and for that reason, they truly are well-positioned for future growth, with the acquisition of Flake out Gaming, viewed as a key catalyst to any future purchases. Also boasting a powerful executive team, the near future is certainly bright for the Swedish operator group.
Written for tobjl.info by Adiela de Bruyn on 06-07-2021