Kindred Group Acquires 32Red – Deal Analysis

Deal Overview

Kindred Group (trading as Unibet at the time of announcement, rebranded to Kindred Group in December 2016) acquired 32Red plc in February 2017 for £175.6 million — delisting the Gibraltar-incorporated, AIM-listed online casino operator from the London Stock Exchange. 32Red had established itself as one of the UK’s most recognisable online casino brands, generating approximately £62 million in annual revenue and holding a strong UKGC licence. The acquisition represented Kindred’s most significant UK market investment and locked down its position in the British online casino market where 32Red outperformed Unibet in brand recognition among UK casino players.

Why 32Red Was Worth £175.6M

32Red’s valuation reflected several premium factors converging simultaneously. Its UKGC licence in good standing, established player database with high LTV UK-depositing customers, brand equity accumulated through partnerships with prominent UK sports clubs (particularly Leeds United and several Championship football clubs), and a proprietary casino platform with a proven UK player experience all contributed to a valuation well above purely revenue-based multiples. The deal represented approximately 2.8x annual revenue — a significant premium that Kindred justified through anticipated cross-sell revenues from introducing Unibet’s sports betting product to 32Red’s casino-focused player base.

The AIM Delisting Dynamic

32Red’s AIM listing created the mechanism for Kindred’s acquisition. AIM-listed iGaming companies — particularly those with strong UKGC licences and established UK player bases — have historically been acquisition targets for larger European operators seeking UK market entry or consolidation. The combination of public market pricing transparency, forced disclosure of financial performance, and the liquidity premium that a listed acquirer offers to AIM shareholders makes AIM iGaming companies systematically attractive M&A targets. 32Red is one of several AIM-listed iGaming acquisitions in the 2015–2020 period that illustrate this pattern.

Key Facts

• 32Red founded: 2002, Gibraltar-incorporated
• AIM listing: London Stock Exchange AIM market (delisted on Kindred acquisition)
• 32Red annual revenue at acquisition: approximately £62M
• Deal multiple: approximately 2.8x annual revenue
• Kindred’s UK strategy post-acquisition: 32Red retained as standalone brand; Unibet operates separately in UK
• 32Red brand strength: UK’s #1 recognisable online casino brand ahead of Unibet for UK-specific customers
• 2024: Both brands passed to FDJ as part of Kindred group acquisition

Market Signal

For sellers of UKGC-licensed online casino businesses, the 32Red acquisition at 2.8x revenue provides a useful precedent — one of the few publicly documented UKGC online casino transactions with both revenue and price fully disclosed. The deal also demonstrates that brand equity in the UK gambling market — built through sports sponsorships, responsible gambling credentials, and player trust — commands material premiums above purely financial metrics.

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