Betfair and Paddy Power Take a £5bn Merger Punt

Betfair and Paddy Power take a ₤ 5bn merger punt

26 August 2015

Betfair and Paddy Power are set to combine in a ₤ 5bn deal that would develop among the world's biggest online wagering and gaming companies.

Final information are still being worked out, however the companies said the deal had "engaging strategic reasoning" and increased their market position.

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

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

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

the yohaig code 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.

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

If the bet9ja's welcome offer goes on, Breon Corcoran, manager of Betfair, would become president of the combined group, while his equivalent at Paddy Power, Andy McCue, would become primary running officer.

'All about scale'

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

Mr Corcoran said: "We essentially believe this promotion code industry is all about scale. By creating two unique 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 monetary officer, said the combination was an "attractive opportunity".

"the yohaig code scale and ability is unparalleled and would leave us in a far better place to compete in our present markets, where competitors is intense," he stated.

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

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

Betfair, on the other hand, is using a market - or betting exchange - that lets customers bypass the need for a conventional bookmaker.

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

Industry mergers

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

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

In July, online gambling firm 888 Holdings won a takeover battle for rival Bwin.party in a cash-and-stock bet9ja's welcome offer valued at about ₤ 898m.