Kindred will take ownership of Relax Gaming for 295 million euro
Kindred Group agreed to buy the outstanding shares of Relax Gaming as part of the deal, rating the provider B2B games at 320 million euro (275 million pounds / 379 million dollars).
The operator Unibet Kindred is the bigger Relax shareholder since 2013 holding 33.4% provider shares. Now it paid around 295 million euro for the ransom of the remaining 66.6% shares.
These 295 million euros will be divided into primary payment in the amount of 80 million euro and two salary payments limited to 113 million euro and payable to 2022 and 2023.
Kindred, which claimed that the purchasing will speed up its strategy on attention increasing to the products and clients’ experience, plans to finance the deal from current funds and credits.
“Thanks to this purchasing we improve rapidly increasing and profitable B2B business with a portfolio of world-class products which gives us much control upon our casino offers, this will remarkably improve the Kindred position, in the long run realisation of a long-time strategy of growth. – our goal is product differentiation and upgrading the customer service” – claimed Henrik Tjarnstrom, Chief Executive Officer at Kindred.
The Relax company, founded in 2010, is working on developing games from online casinos supported by open distribution platform for third-party aggregating, as well as its own products for poker and bingo playing.
At Relax company are working around 240 employees at four main centers at Malta, Estonia, Sweden and Serbia. At the moment it exclusively provides Kindred content for poker and bingo playing.
During 12 months till may 2021 the Relax earnings constituted 25 million euro, and the earnings before interest, taxes, depreciation and amortization (EBITDA) reached 10 million euro.
Kindred is planning that Relax will work as an independent organization inside a group with separate supervisory board and manager team. Kindred will also continue to invest in Relax in order to reinforce provider standing in the market based on further strengthening of its product offer and increasing client base B2B.
All stock options programs for Relax Gaming employees will be realized, while Relax management will reserve the proprietary right on around 7% diluted provider shares, as a result the Kindred part at Relax will constitute 93%.
It is expected that this purchasing will bring the annual synergizing effect in the amount of 8 million euro the next three years, though hopes to finish the deal till the Q4 this year upon the condition of getting the usual regulatory bodies permissions.
“Joining the Kindred Group is a natural next move at our long cooperation with Kindred of all our product vertical lines. Increased Kindred presence will allow Relax Gaming to continue to invest and speed up the expansion of our B2B offer all over the world” – said the Co-Founder and Chairman, Patrik Osteraker.
“We will continue the Relax Gaming way as a separate B2B enterprise with an unchanged portfolio of products and common strategy, staying true to our values and respecting the hard-earned trust of our clients.”