Paddy Power and Betfair announce possible merger

Paddy Power and Betfair could soon join forces as the two companies have reached an agreement in principle of a possible merger to create Paddy Power Betfair plc.

The possible merger is set to create one of the world’s largest public online betting and gaming companies by revenue with enlarged scale, capability and distinctive and complementary brands.

This joint venture also offers a beneficial opportunity for both companies to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value.

The key terms agreed upon include Paddy Power shareholders owning 52%, whereas Betfair shareholders would own 48% of the issued and to be issued share capital of Paddy Power Betfair plc.

As soon as the merger is complete, Paddy Power shareholders will also receive a dividend of £58.5m, and Gary McGann, chairman of Paddy Power, will become chairman of the Board of Paddy Power Betfair plc.

In addition, Breon Corcoran, CEO of Betfair, is set to take on the CEO role of the new company, and Andy McCue, CEO of Paddy Power will become COO and an executive director.

Furthermore, Alex Gersh, CFO of Betfair, would also become CFO and an executive director.

The board of directors of Paddy Power Betfair plc will also comprise other non-executive directors nominated equally from each of Paddy Power and Betfair; and the structure of the possible merger is being finalised with a view to maximising benefits to shareholders and other stakeholders.

The newly formed company is expected to maintain a significant presence in Ireland and in the UK.

The creation of Paddy Power Betfair plc will see a combined revenue of over £1.1bn due to the two companies’ last financial years.

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