The UK Gambling Commission (UKGC) has given its approval to Kindred Group’s acquisition of 32Red. Thanks to the fact that the British gaming regulator gave the green light to the companies, they were able to carry out the deal with effect from June 6th, 2017. The takeover will help Kindred to expand its reach and consolidate its presence in the local iGaming market.
As a result of the deal, the Gibraltar-licensed online casino company 32Red will be taken over by the online gambling operator Kindred Group, which currently owns some of the most popular brands on the iGaming market, such as Unibet, Stan James, Maria Casino, etc. The completion of the deal grants Kindred Group with full control of 32Red.
The acquisition offer valued 32Red to a total of £175.6 million, with Kindred Group taking over a total of 97% of the Gibraltar-licensed gambling operator’s outstanding shares. In addition, the Malta-based company is to forcibly acquire the remaining shares of 32Red. What is more, the operator which is currently one of the fastest growing online gaming operators on the territory of Europe will probably initiate the 32Red de-listing from the AIM Market of the London Stock Exchange (LSE).
As reported by Casino Guardian earlier this year, Kindred Group had made a £175.6-million acquisition bid for 32Red. The Malta-based company then said that it had reached an agreement for a recommended cash offer for the online casino operator. At that time, the boards of the two companies have agreed on the offer’s major terms.
Once the recommended cash offer agreement was reached, Kindred Group revealed that it was to acquire both the current and future assets of 32Red.
As revealed by Kindred Group, the total costs related to the assets transaction were estimated to £4.6 million, out of which a portion of £0.6 million has already been recognised in the first quarter of 2017. Another cash portion estimated to £3.2 million are to be recognised over the second quarter of 2017. On the other hand, the remaining portion of 0.8 millionis to be recognised in the period from the third quarter of 2017 to the fourth quarter of 2019.
The company has also estimated that the amortisation of the purchased intangible assets is to start in the second quarter of 2017. The amortisation is estimated to approximately £7-8 million on an annual basis over the upcoming three years.
The consolidation of Kindred Group on the UK iGaming market through the acquisition of 32Red would undoubtedly bring some changes in the online gaming arena. The completion of the deal is to expand Kindred Group’s current market share, turning the company into one of the major players in the UK online gaming market. In addition, a number of established 32Red brands will be added to Kindred’s offering, providing the latter with the chance not only to expand its product line with successful and reputable brands, but also to reach more customers in the UK, Gibraltar and Italy.
- Author
Olivia Cole
