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Betfair and Paddy Power take a ₤ 5bn merger punt
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26 August 2015

Betfair and Paddy Power are set to merge in a ₤ 5bn bet9ja's welcome offer that would develop one of the world's greatest online betting and video gaming companies.

Final details are still being exercised, however the business stated the deal had "engaging tactical reasoning" and enhanced their market position.

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

The combined business would have yearly earnings of some ₤ 1.1 bn.
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"Discussions stay continuous regarding the other terms of the possible merger," a declaration stated on Wednesday, external.

The brand-new group would be the UK online market leader with a 16% share, according to industry data, passing a merged Ladbrokes/Coral on 14%, in addition to William Hill and the privately owned Bet365.
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Shares in Betfair soared 17% to ₤ 30.60 on Wednesday, while Paddy Power jumped more than 18% in Dublin.

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

'Everything about scale'

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

Mr Corcoran stated: "We essentially think this promotion code market is all 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 primary financial officer, stated the combination was an "attractive opportunity".

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

Given the complementary nature of the 2 companies, he was positive that any competition issues could be conquered.

was founded in 1988, when 3 Irish bookmakers merged. It has 350 betting stores and is the third-largest online bookmaker.

Betfair, on the other hand, is offering a marketplace - or betting exchange - that lets clients bypass the requirement for a conventional bookie.
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Based upon their closing costs on Tuesday, Betfair deserved ₤ 2.4 bn and Dublin-listed Paddy Power deserved EUR3.4 bn (₤ 2.5 bn).

Industry mergers

Shareholders in Paddy Power would receive an unique dividend of EUR80m.

There has been a flurry of merger activity in the gaming sector in recent months.
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In July, online gaming firm 888 Holdings won a takeover battle for rival Bwin.party in a cash-and-stock deal valued at about ₤ 898m.
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The 2 companies had remained in discussions considering that the middle of May.

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

Online gambling firm 888 buys Bwin

17 July 2015

CVC racks Betfair takeover bid

14 May 2013
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