Kindred Group inks deal to take over Relax Gaming Limited
Prominent iGaming operator Kindred Group has announced the signing of a deal that is to see it fully acquire Maltese online casino games developer Relax Gaming Limited so as to strengthen its ‘product control and product differentiation capabilities’.
The Swedish firm used an official press release to detail that it has been a major investor in Relax Gaming Limited since 2013 and currently controls a 33.4% shareholding in the company behind a vast portfolio of mobile-friendly online casino, poker and bingo games. The operator explained that the new arrangement will involve it paying an initial cash consideration of €80 million ($94.6 million) in order to purchase the outstanding 66.6% stake in the St Julian’s-headquartered developer.
Kindred Group stated that the understanding has also seen it agree to make ‘earn-out payments’ worth up to €113 million ($133.6 million) over the course of the next two years tied to the developer ‘achieving certain earnings thresholds.’ It proclaimed that the acquisition is being financed through its ‘existing cash and credit facilities’ and will moreover involve Relax Gaming Limited remaining as ‘an independent entity within the group’ complete with its own ‘board of directors and management team.’
Henrik Tjarnstrom (pictured) serves as the Chief Executive Officer for Stockholm-listed Kindred Group and he used the press release to declare that the takeover of Relax Gaming Limited is expected to close during the fourth quarter of 2021 subject to ‘customary regulatory approvals.’ He went on to assert that the arrangement will give his firm control over ‘a market-leading business-to-business (B2B) iGaming software supplier’ that is well known for designing and developing ‘proprietary poker and bingo products’ in addition to online casino games that are ‘supported by an open distribution platform for third-party aggregation.’
Read a statement from Tjarnstrom…
“Through this acquisition we add a rapidly growing and profitable B2B business with a world-class product portfolio to give us greater control over our casino, poker and bingo offering. This will put Kindred Group in a significantly better position to achieve our long-term strategy of increasing our focus on product differentiation and customer experience.”
For his part and Patrik Osteraker, Chairman for Relax Gaming Limited, described the purchase arrangement ‘as a natural next step’ in his company’s cooperation with Kindred Group ‘across all our product verticals.’ He finished by disclosing that he will remain in his current role post-sale with the subordinate’s management retaining a an around eight percent shareholding in the acquired developer.
Osteraker’s statement read…
“Kindred Group’s strengthened presence will allow us to further invest in and accelerate the expansion of our B2B offering across the globe. We will continue the journey as a separate B2B entity with unchanged product portfolio and overall strategy, staying true to our values and respecting the hard-earned trust of our customers.”