Kindred Group buys out 32Red.com in £176m mega deal

In huge news for the online gambling industry, Kindred Group has struck a £176 million (AUD $286.4m) deal to buy out 32Red.

The acquisition will see Kindred significantly expand its presence in the United Kingdom and Europe across a variety of platforms.

Shares will cost the company 196 pence (AUD $3.19) apiece.

“The acquisition of 32Red is consistent with our multi-brand strategy and stated desire to grow our business in regulated and soon to be regulated markets,” said Henrik Tjärnström, the Kindred Group CEO, on Thursday.

“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.”

What is not yet clear is whether 32Red’s founder and chief executive, Ed Ware, will stay on once the transition is complete.

The company has flourished on every front under his stewardship, with total revenue from casino, bingo and sports betting rising 28 per cent year-on-year to £62.3m (AUD $101.4m) in 2016.

“We have consistently and profitably grown 32Red’s market share in the regulated markets of the UK and more recently, Italy,” Ware said in an analyst call.

“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.”

This is just the latest in a series of big moves by Kindred since 2005.

Its ever-expanding umbrella already covers 13 online betting brands, including Bingo.com, StanJames.com and Unibet.