European Poker Giants Agree to Merger

PartyGaming, owner of PartyPoker, and bwin, the Austro-German betting giant, today agreed terms on their long-mooted merger.

Pending shareholder approval, bwin will own 51.64 percent of the enlarged group while PartyGaming will own 48.36 percent.

The companies said the merger would lead to “the world’s largest online gaming business [with] market leading positions in all key verticals including online poker…”

The company will be listed on the London Stock Exchange and expects to achieve annual savings €55 million through “synergies” though the companies have yet to announce what the company will be called or what their plans for PartyPoker and the Ongame poker network are.

According to Reuters newsagency PartyGaming had a market value of £1.05 billion while bwin was worth £1 billion based on Wednesday’s share prices.

PartyGaming’s share price jumped from 257p to 313p by 12.25 p.m. today while bwin’s shares were up 12.1 percent at the time of writing.

Jim Ryan, chief executive officer of PartyGaming said, “This is a transformational opportunity for both our companies to create the world’s largest listed online gaming business…the Enlarged Group will have a winning formula to exploit the growing online gaming market, supported by a strong balance sheet, significant cashflow generation and a highly experienced management team.”

Norbert Teufelberger, co-chief executive officer of bwin said, “This merger of equals makes great strategic, operational and financial sense. We will be in pole position to capitalise on the wealth of opportunities that will flow from the continued evolution and expansion of the global online gaming industry.”

Both men will helm the new company as co-chief executives.

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