By Business & Finance 
The boards of Paddy Power and Betfair have announced that they have reached agreement on the terms of a recommended all-share merger to be called Paddy Power Betfair.
The new combined group will be one of the world’s largest public online betting and gaming companies by revenue.
The merger will result in Paddy Power shareholders owning 52% of Paddy Power Betfair and Betfair shareholders owning 48%.
The boards of Paddy Power and Betfair believe that the combined group will be able to achieve recurring annual pre-tax cost synergies of approximately £50m.
Gary McGann, chairman of Paddy Power, will become the chairman of Paddy Power Betfair; Breon Corcoran, CEO of Betfair, will become CEO and an executive director; Andy McCue, CEO of Paddy Power, will become COO and an executive director; and Alex Gersh, CFO of Betfair, will become CFO and an executive director.
The company will be headquartered in Dublin and is expected to maintain a significant presence in both Ireland and the United Kingdom.
Commenting on the merger, Gary McGann, chairman of Paddy Power said:
“The merger of Paddy Power and Betfair will create a company of world class capability and people who will deliver substantial up-front synergies and a platform for very exciting business expansion. The combination of Breon, Andy and their colleagues in this merger of equals comprises ‘the A team’ in the business with the ambition to create a unique global player in a very dynamic industry.”
Gerald Corbett, chairman of Betfair added: “The merger of Paddy Power and Betfair will create one of the world’s largest public online betting and gaming companies. The combination makes huge strategic sense by bringing together two industry leading and successful businesses and providing enlarged scale, capability and distinctive, complementary brands. Under the guidance of a strong and proven combined management team, this merger truly represents an attractive opportunity for both Paddy Power and Betfair to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value.”
