Kindred Group is to make a £175.6m cash offer for operator 32Red after the companies’ respective boards agreed terms.

Kindred set to acquire 32Red

This deal will enhance Kindred’s position in the online casino market in the UK and is consistent with the company’s multi-brand strategy further enhance.

Founded in 2002, the Gibraltar-based 32Red offers online casino, poker, bingo and sports betting under the 32Red, 32RedPoker, 32RedBingo and 32RedSport brands.

The operator has approximately 125 employees based in Gibraltar and, earlier this month, announced net gaming revenues of £62.3m for the year ended to December 31, 2016.

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

“32Red is a high-quality, customer-focused business with a similar culture to Kindred Group’s and we are delighted to welcome 32Red and its team into the Kindred family and look forward to further developing the brand going forward.”

Completion of the transaction is subject to certain conditions including regulatory approvals.