Andy McCue, chief executive, Paddy Power
The boards of Paddy Power and Betfair have announced an agreement has been reached on the key terms of a possible merger of Paddy Power and Betfair.
The merger would create one of the world’s largest public online betting and gaming companies and allow both companies the opportunity to enhance their position in online betting and gaming.
In the terms of the deal, Paddy Power shareholders would own 52% of the combined group with Betfair shareholders owning the remaining 48%.
Current Paddy Power boss Andy McCue would become chief operations officer, while Gary McGann would be chairman of the combined group, while Betfair’s Breon Corcoran and Alex Gersh would become CEO and CFO respectively.
Paddy Power shareholders would receive a dividend of €80m prior to the completion of the deal, which would leave both parties better placed to compete in existing and new markets.
Both Betfair and Paddy Power have strong platforms across online and retail in the UK and Ireland, and attractive international growth opportunities in Continental Europe, the US and Australia and the merger would lead to the creation of one of the world’s largest public online betting and gaming companies.
It is expected that the combined group would maintain a significant presence in Ireland and in the UK.
Commenting of the news, Betfair chief executive Breon Corcoran said: “It would create a truly global sports betting group with unmatched products and talent, and significantly enhanced scale. The combined business would be one of the world’s largest online sports betting operators, with revenues totalling more than £1bn.”
Discussions remain ongoing regarding the other terms of the possible merger and further updates are expected over the coming weeks.