Presenting Q1 2017 results, Kindred Group CEO Henrik Tjärnström has stated his firm will move to become a UK market player following the acquisition of 32 Red Plc for £175 million (deal announced February 2017).
Kindred’s leader was pleased to have secured his firm’s thirteenth online gambling brand, adding a further renowned asset to Kindred’s regulated market portfolio.
Tjärnström told investors that 32 Red joins Kindred stables, at the strongest point in the firm’s history. Q1 2017 has seen the Stockholm-listed operator record ‘all-time highs’ in player activity of +1.2 million, combined with its sports betting division hitting the £1 billion wagering mark.
Moving forward Kindred will have a triple brand presence in the UK, with 32 Red, Stan James and Unibet brands bringing diverse and attractive consumer propositions to a market valued at £4.5 billion with an estimated 22.5 active customers (UKGC stats).
Assessing 32 Red as an acquisition target, Tjärnström revealed that Kindred’s executive team viewed the company as a ‘complimentary asset’ for its UK portfolio which had been primarily driven by the sports betting services of Stan James (acquired 2015) and legacy brand Unibet.
Kindred now gains a focused casino property for the UK market, which will contribute to market growth immediately having reported full-year 2016 revenues of £62 million combined with an EBITDA of £10.6 million.
Ending the update, Tjärnström stated that Kindred executives will push to make 32 Red cash effective asset by improving cost and operational synergies with existing corporate assets.
Source: SBC News
