Betfair and Paddy Power take a ₤ 5bn merger punt

26 August 2015

Betfair and Paddy Power are set to combine in a ₤ 5bn bet9ja's welcome offer that would create one of the world's greatest online wagering and gaming business.

Final information are still being exercised, but the business said the deal had "engaging strategic reasoning" and enhanced their market position.

Paddy Power shareholders would own 52% of the combined business, with Betfair financiers owning the staying 48%.

The combined organization would have yearly revenues of some ₤ 1.1 bn.

"Discussions remain ongoing concerning the other regards to the possible merger," a declaration said on Wednesday, external.

The brand-new group would be the UK online market leader with a 16% share, according to market information, passing a merged Ladbrokes/Coral on 14%, along with William Hill and the privately owned Bet365.

Shares in Betfair soared 17% to ₤ 30.60 on Wednesday, while Paddy Power jumped more than 18% in Dublin.

If the deal goes ahead, Breon Corcoran, employer of Betfair, would become chief executive of the combined group, while his counterpart at Paddy Power, Andy McCue, would end up being primary operating officer.

'Everything about scale'

The combined company prepares to maintain the "unique and complementary" Betfair and Paddy Power brands in Europe.

Mr Corcoran stated: "We basically believe this promotion code industry is all about scale. By putting together two distinct but phenomenally strong brand names, we'll have a market leading position in the UK, Ireland, Australia and in the United States."

Cormac McCarthy, Paddy Power's primary monetary officer, said the combination was an "appealing opportunity".

"The scale and capability is unmatched and would leave us in a much better place to contend in our present markets, where competitors is intense," he said.

Given the complementary nature of the 2 business, he was confident that any competition issues could be overcome.

Paddy Power was established in 1988, when 3 Irish bookies merged. It has 350 betting shops and is the third-largest online bookie.

Betfair, in contrast, is providing a market - or wagering exchange - that lets clients bypass the need for a standard bookmaker.

Based on their closing costs on Tuesday, Betfair was worth ₤ 2.4 bn and Dublin-listed Paddy Power was worth EUR3.4 bn (₤ 2.5 bn).

Industry mergers

Shareholders in Paddy Power would get a special code yohaig dividend of EUR80m.

There has actually been a flurry of merger activity in the gaming sector in recent months.

In July, online betting company 888 Holdings won a takeover fight for competing Bwin.party in a cash-and-stock bet9ja's welcome offer valued at about ₤ 898m.

The 2 companies had actually been in discussions given that the middle of May.

Ladbrokes and Gala Coral also just recently sealed a ₤ 2.3 bn merger.

Online gambling firm 888 buys Bwin

17 July 2015

CVC shelves Betfair takeover bid

14 May 2013