Kindred Group completes Relax Gaming acquisition4th October 2021 8:26 am GMT
Stockholm-listed Kindred Group has completed the acquisition of B2B iGaming supplier Relax Gaming.
Kindred previously owned a 33.4 per cent stake in the business and entered into an agreement to acquire the remaining 66.6 per cent of outstanding shares in Relax Gaming in July.
The transaction values Relax Gaming at up to €320m on a cash and debt free basis, with the total value of the outstanding shares amounting to €295m .
The initial consideration of approximately €80m has been settled in cash, with a maximum earn-out payment of up to €113m potentially due in 2022 and 2023, subject to Relax Gaming achieving certain earnings thresholds.
The deal is expected to generate annual run-rate synergies of €8m within the next three years for Kindred Group, driven by lower investment needs and reduced cost of sales.
In order to secure the continued integrity of Relax Gaming’s B2B customers, Kindred intends to keep Relax Gaming as an independent entity within the group, with a separate management team and board of directors. Relax Gaming co-founder Patrik Österåker will remain as chairman.
In conjunction with the completion of the transaction, all existing employee share option programmes in Relax Gaming have been exercised, and Relax Gaming management retain an ownership of seven per cent of the total fully diluted shares in the company.
Relax Gaming currently has approximately 240 full-time employees, with four main hubs in Malta, Estonia, Sweden and Serbia.
Shares in Kindred Group plc (STO:KIND) were trading 3.09 per cent lower at SEK134.65 per share in Stockholm Monday morning.