This site contains commercial content

Roxy Palace's Ownership

2017-06-07 12:04:09

Kindred Group PLC the Swedish online gaming company who were known as Unibet has agreed to buy U.K. rival 32Red Plc for 175.6 million pounds ($219 million), the latest deal in a wave of betting industry companies consolidation.

The Roxy Palace Owners

Kindred will pay 196 pence a share for the owner of the Roxy Palace online casino brand, which is 16 percent above the last closing price for 32Red, whose share price had upped in the last three weeks with takeover speculation. The debt-funded offer is 40 percent more than the average price in the last three months, Kindred said in a statement Thursday.

The takeover continues a surge of merge-and-acquisition moves across the gaming industry, where companies need an additional scale to meet increasing obligations of tax and regulation. Kindred hasn’t done a deal since acquiring the online gambling business of StanJames in 2015. In 32Red, the Swedish company is gaining a business that’s long been regarded as a potential target.

“At first glance, this deal does seem to make strategic and financial sense,” David Jennings, an analyst at Davy Stockbrokers, said in a note. “We expect to see further consolidation in the gaming space this year based on the same types of motive that have driven this deal, namely scope to build scale, diversify regulatory risk and improve efficiency.”