by Renee Israel
The London Stock Exchange was informed this week that the operator of Unibet, Kindred, has agreed to acquire 32Red.com.
Kindred will pay £175.6 million for the London-listed gaming company which runs, among other sites, the award-winning 32Red Casino.
Under the terms of the proposed deal, Kindred will pay 196 p per share. In addition, shareholders are expected to receive a second interim dividend of 4 pence per share at the end of next month.
The directors of 32Red.com are expected to accept the bid, which is offering 16.3% more per share on the company's closing share price this week.
Kindred's Multi Brand Strategy
Kindred (formerly Unibet Group), is considered one of the top online gambling providers in Europe. It runs Unibet Casino, and acquired two other groups in the past two years, namely iGame and Stan James.
Kindred's chief executive, Henrik Tjanstrom said that the acquisition of 32Red was consistent with his group's multi-brand strategy and stated desire to grow its business in regulated and soon-to-be regulated markets.
"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," he said.
Similar Business Philosophies
The chief executive of 32Red, Ed Ware added that the London-listed group has consistently and profitably grown the company's market share in the regulated markets of the United Kingdom 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," he said.
In 2016, 32Red made record annual net gaming revenues of £62.3 million. It saw a 28% year on year rise over the year. Ware said that the company experienced
"another hugely successful year with profits and revenues breaking previous
records, driven by excellent growth in our core casino products."