
The principle agreement between the two firms would create Paddy Power Betfair.
It’s defined by the pair as what would be “one of the world’s largest public online betting and gaming companies,” which is a result of the firms’ collective revenue hitting more than £1.1bn over the most recent financial year. Describing “strategic logic” behind the decision, the companies would seek to use their similarities and differences to generate better returns for improved shareholder value and customer satisfaction. Terms of the agreement would see Paddy Power shareholders secure a 52 per cent stake, with those from the Betfair camp securing the remaining 48 per cent. Although the UK and Ireland would still be key markets for the firm, the merger would open up wider opportunities to scale into overseas territories – namely, Europe, the US and Australia.Read more on mergers and acquisitions:
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Other proposals would see Paddy Power chairman Gary McGann named chairman of the overall group, while Betfair CEO Breon Corcoran would lead the new business. Paddy Power’s McCue, meanwhile, would become group COO, while Betfair CFO Alex Gersh would manage finances for the entire group.
Discussions are ongoing to adhere to due diligence, but the firms expect a further update in coming weeks. “Betfair US continues to perform well, helped by the acquisition of HRTV and TVG’s subsequent access to additional premium horseracing content. Betfair’s current momentum is strong and the business remains well placed to execute against our strategy and to continue to deliver profitable growth,” said Corcoran. “The proposed merger with Paddy Power is hugely exciting. It would create a truly global sports betting group with unmatched products and talent, and significantly enhanced scale.”Share this story