Betfair and Paddy Power take a ₤ 5bn merger punt

26 August 2015

Betfair and Paddy Power are set to merge in a ₤ 5bn deal that would produce one of the world's most significant online betting and gaming business.

Final details are still being exercised, but the companies stated the bet9ja's welcome offer had "engaging strategic logic" and improved their market position.

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

The combined company would have annual profits of some ₤ 1.1 bn.

"Discussions stay ongoing concerning the other terms of the possible merger," a declaration stated on Wednesday, external.

the yohaig code new group would be the yohaig code UK online market leader with a 16% share, according to industry data, passing a merged Ladbrokes/Coral on 14%, as well as William Hill and the privately owned Bet365.

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

If the bet9ja's welcome offer proceeds, Breon Corcoran, boss of Betfair, would become primary executive of the combined group, while his counterpart at Paddy Power, Andy McCue, would become primary operating officer.

'Everything about scale'

The combined business plans to maintain the "distinct and complementary" Betfair and Paddy Power brand names in Europe.

Mr Corcoran said: "We essentially believe this promotion code industry is everything about scale. By creating 2 distinct however extremely 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 chief financial officer, said the combination was an "attractive chance".

"The scale and ability is unmatched and would leave us in a better location to contend in our current markets, where competitors is intense," he stated.

Given the complementary nature of the two companies, he was positive that any competition concerns could be overcome.

Paddy Power was established in 1988, when 3 Irish bookmakers merged. It has 350 wagering shops and is the third-largest online bookmaker.

Betfair, in contrast, is offering a market - or wagering exchange - that lets clients bypass the requirement for a traditional bookmaker.

Based upon their closing prices on Tuesday, Betfair deserved ₤ 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 dividend of EUR80m.

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

In July, online betting firm 888 Holdings won a takeover battle for rival Bwin.party in a cash-and-stock deal valued at about ₤ 898m.

the yohaig code two business had remained in conversations considering that the middle of May.

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

Online gambling company 888 buys Bwin

17 July 2015

CVC shelves Betfair takeover quote

14 May 2013