In a recent deal agreed in principlr by both casinos they plan to merge and form a brand new combined company.
If the deal goes ahead the new company formed would become ‘Paddy Power Betfair’ and both operators have said it would become one of the world’s largest public online betting and gaming companies. We think you’ll agree that looking forward this will mean some exciting times for both operators as well as the players.
Under the new agreement by both parties it would mean that Paddy Power shareholders would own 52% of the firm and Betfair would then own the other 48% of the newly formed company. It is said that upon completion of the deal, Paddy Power Shareholders would receive a special dividend of €80 million!
Both the chairman of Paddy Power a Mr Gerry McGann and the Betfair chier executive Broen Corcoran would assume the same roles in the new company.
Paddy Power and Betfair made a joint statement about the new deal as follows:
“The possible merger would create one of the world's largest public online betting and gaming companies by revenue with enlarged scale, capability and distinctive and complementary brands,”
“The combination has compelling strategic logic and represents an attractive opportunity for both companies to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value.”
This potential merger actually comes at a time when other major operators, Ladbrokes and Gala Casino are expected to complete their proposed merger in the future. Confirmation of this potential merger has come to light as both Paddy Power and Betfair revealed year-on-year growth in their recent financial results.
The Chief executive Corcoran also commented “The proposed merger with Paddy Power is hugely exciting; 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 £1 billion.”
Keep your eyes peeled as we will keep you up-to-date on more information about this exciting merger.