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Kindred Group, which has been investing in leading game developer and aggregator Relax Gaming since 2013, announced that an agreement has been signed between the two parties in order to acquire the remaining 66.6% of the shares. Kindred will pay an initial consideration, settled in cash upon completion, of approximately EUR 80 million (on a cash and debt free basis). In addition to the initial consideration, the maximum earn-out payments amount to EUR 113 million and may become payable in 2022 and 2023, subject to Relax Gaming achieving certain earnings thresholds.
Relax Gaming is supported by an open distribution platform for third party aggregation as well as proprietary poker and bingo products was founded in 2010 and has today 240+ employees in Malta, Estonia, Sweden and Serbia. In the last twelve months leading up to May 2021, Relax Gaming generated revenues of approximately EUR 25 million with an EBITDA of approximately EUR 10 million.
Kindred Group’s CEO Henrik Tjarnstrom commented on the deal: “Through this acquisition we add a rapidly growing and profitable B2B business with a world-class product portfolio, giving us greater control over our casino, poker and bingo offering, putting Kindred in a significantly better position to achieve our long-term strategy to increase our focus on product differentiation and customer experience”.
Co-founder and Chairman of the Board at the Relax Gaming Patrik Osteraker added: “Joining Kindred Group comes as a natural next step in our long-standing cooperation with Kindred across all our product verticals. Kindred’s strengthened presence will allow Relax Gaming to further invest in and accelerate the expansion of our B2B offering across the globe. We will continue the Relax Gaming journey as a separate B2B entity with unchanged product portfolio and overall strategy, staying true to our values and respecting the hard-earned trust of our customers. Our continued independence is a key element of the transaction, and I am happy to remain on the board of Relax Gaming”.
