Kindred Group completes the acquisition of Relax Gaming
Kindred Group, listed in Stockholm, has completed the acquisition of B2B iGaming provider Relax Gaming.
Kindred previously held a 33.4% stake in the company and reached an agreement to acquire the remaining 66.6% of the outstanding shares of Relax Gaming in July.
The transaction values Relax Gaming up to € 320 million on a cash and debt-free basis, with the total value of shares outstanding amounting to € 295 million.
The initial consideration of approximately € 80 million was paid in cash, with a maximum earnout of up to € 113 million potentially due in 2022 and 2023, subject to Relax Gaming reaching certain income thresholds.
The deal is expected to generate annual synergies of € 8 million over the next three years for Kindred Group, thanks to lower investment needs and lower selling costs.
In order to ensure the continued integrity of Relax Gaming’s B2B clients, Kindred intends to maintain 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 chairman.
In conjunction with the closing of the transaction, all of Relax Gaming’s employee stock option programs have been exercised and management of Relax Gaming retains seven percent ownership of the company’s total fully diluted shares. .
Relax Gaming currently has around 240 full-time employees, with four main centers in Malta, Estonia, Sweden and Serbia.
Actions in Kindred Group plc (STO: KIND) were trading down 3.09% to SEK 134.65 per share in Stockholm on Monday morning.