Kindred completes acquisition of Relax Gaming
Indred group announced on July 2, 2021 that it had reached an agreement to acquire the remaining 66.6% of the outstanding shares of Relax, an iGaming B2B software provider that designs and develops online casino games. Kindred has been invested in Relax Gaming since 2013 and was the largest owner prior to the transaction with 33.4% of the shares outstanding.
The acquisition accelerates Kindred’s strategy to focus more on product and customer experience by strengthening Kindred’s product control and product differentiation capabilities. The acquisition is is expected to generate annual synergies of 8 million euros (9.27 million US dollars) over the next three years for the Group, driven in particular by lower investment needs and lower cost of sales.
In order to ensure the continued integrity of Relax Gaming’s B2B customers, Kindred’s intention is to keep Relax Gaming as independent entity within the group with a separate management team and board of directors. Patrik Österåker, co-founder of Relax Gaming, will remain chairman of the board.
In parallel with the closing of the transaction, all of Relax Gaming’s employee stock option programs were exercised, and Relax Gaming management retains ownership of 7% of total fully diluted shares in the society. Kindred’s stake in Relax Gaming after the transaction represents 93% of the total fully diluted shares.
The transaction values Relax Gaming up to 320 million euros (371 million US dollars) on a cash and debt-free basis (enterprise value) and a total value of shares outstanding of approximately € 295 million (US $ 342 million, equity value). The initial consideration for the remaining portion outstanding of approximately € 80 million (US $ 92 million), on a cash and debt-free basis, was settled in cash. In addition to the initial consideration, the maximum earn-out payments amount to € 113 million (US $ 131 million) and may become payable in 2022 and 2023, provided that Relax Gaming meets certain revenue thresholds.