Kindred Group and Kambi Group plc agreed to extend their sportsbook partnership. The three-year extension will be effective once the current contract ends (January 1, 2024). With this extension, the relationship between the two parties, which was originally formed in 2014, will continue to flourish as the companies are hoping to reach new heights.
Kambi to Be In a Fantastic Position with the New Deal
The partnership between Kambi and Kindred was the result of Kindred’s decision to spin-off from Kambi and as part of that process, Kindred had a €7.5 million ($8.5 million) Kambi convertible bond. Since then, Kindred rose a lot and even became Sweden’s leading employer, while Kambi satisfied the bond agreement’s criteria concerning financial performance.
Thanks to that achievement, Kambi can repay the full amount and exit the bond agreement whenever it wants. Upon the convertible bond prepayment, the company will eliminate Kindred’s controlling influence by eliminating Kindred’s option to convert bonds into shares.
Moreover, Kambi won’t be required to ask for consent for certain events and in doing so, its shareholders will finally have full control of Kambi’s strategic position.
The CEO and co-founder of Kambi, Kristian Nylén, stated that both companies will continue thriving together and further develop the strategies of both companies to reach new heights. With the extension, Kambi will continue providing Kindred with “modularized technology and services until 2026” and the changes made in the new agreement put Kambi in a very strong position, which is of massive importance as the company enters a crucial stage in its global growth.
Kindred’s CEO, Henrik Tjärnström, also shared a few words on the partnership extension. He said that he’s very pleased to continue working with Kambi and have the company supply Kindred with high-quality services in the coming years. He also stated that the partnership with Kambi is one of the foundations in Kindred’s strategy of becoming a “product-driven company with a sustained dedication to customer experience.”
The Extension Provides Kindred and Kambi With Massive Security
Thanks to the new contract, Kambi will have a revenue baseline guarantee and Kindred will be committed to a minimum €55 million ($62.8 million) revenue contribution from 2024 to 2026. However, Kindred will receive Kambi’s ground-breaking technology, allowing the company to grow and pursue its own strategy.
Kindred’s plan is to reduce its reliance on its partner but only to a certain degree as Kambi’s technology is set to remain a crucial part of the company’s sportsbook services.
As for Kambi, the deal further allows the company to grow and become stronger with its differentiation by further developing its technology with the aim of providing a unique sports betting experience.