Betfair and Paddy Power take a ₤ 5bn merger punt

26 August 2015

Betfair and Paddy Power are set to combine in a ₤ 5bn bet9ja's welcome offer that would create one of the world's most significant online betting and gaming business.

Final information are still being worked out, but the business stated the deal had "engaging tactical logic" and increased their market position.

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

The combined business would have yearly earnings of some ₤ 1.1 bn.

"Discussions stay continuous relating to the other terms of the possible merger," a declaration stated on Wednesday, external.

The new group would be the UK online market leader with a 16% share, according to industry information, passing a merged Ladbrokes/Coral on 14%, along with William Hill and the independently 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 ahead, Breon Corcoran, manager of Betfair, would end up being president of the combined group, while his counterpart at Paddy Power, Andy McCue, would become chief running officer.

'All about scale'

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

Mr Corcoran stated: "We essentially think this promotion code industry is all about scale. By putting together two unique but 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 scale and ability is unsurpassed and would leave us in a better location to contend in our present markets, where competitors is extreme," he stated.

Given the complementary nature of the yohaig code 2 business, he was confident that any competitors issues could be conquered.

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

Betfair, on the other hand, is providing a market - or betting exchange - that lets consumers bypass the need for a traditional bookie.

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

Industry mergers

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

There has been a flurry of merger activity in the gambling sector in recent months.

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

The 2 business had actually been in conversations considering that the middle of May.

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

Online betting company 888 purchases Bwin

17 July 2015

CVC racks Betfair takeover quote

14 May 2013