Henrik Tjärnström, CEO of Kindred Group, has said that his firm’s £175.6m acquisition of 32Red is consistent with the firm’s ‘multi-brand strategy and stated desire to grow our business in regulated and soon to be regulated markets’. 32Red will now join Kindred’s stable of brands which includes Unibet, Stan James, Maria Casino and Bingo.com.
Commenting on the deal, announced this morning, he added: “32Red is a high quality, customer-focused business with a similar culture to Kindred’s and we are delighted to welcome 32Red and its team into the Kindred Group and look forward to further developing the brand going forward.”
Founded in 2002, 32Red is a Gibraltar-based online gaming company, operating online casino, online poker, online bingo and online sports betting under the brands 32Red.com, 32RedPoker.com, 32RedBingo.com and 32RedSport.com. In 2015, 32Red acquired the Roxy Palace online casino business. 32Red is licensed and regulated in Gibraltar, the UK and Italy and is listed on the AIM market of the London Stock Exchange.
In the financial year ended 31 December 2015, 32Red generated Net Gaming Revenues of GBP 48.7 million and EBITDA of GBP 5.2 million. On 1 February 2017, 32Red issued a Post Close Trading Update for the year ended 31 December 2016 and announced Net Gaming Revenues of GBP 62.3 million.
The 32Red Directors, who have been advised by Numis as to the financial terms of the offer, consider the terms of the cash offer to be fair and reasonable. In providing advice to the 32Red Directors, Numis has taken into account the commercial assessments of the 32Red Directors.
The cash consideration payable under the offer will be funded by new acquisition facilities of up to GBP 178 million, specifically for the purposes of this transaction. Kindred Group has received irrevocable undertakings in support of the Offer in relation to an aggregate of 60,701,232 32Red shares, representing approximately 71.1 per cent of the share capital of 32Red.
Ed Ware, CEO of 32Red (pictured), said: “We have consistently and profitably grown 32Red’s market share in the regulated markets of the UK and more recently, Italy. The management team at Kindred have a similar business philosophy to our own and we look forward to joining forces with Kindred and continuing our successful growth within the Kindred Group.”