Poker Business: Gambling Sites Paddy Power, Betfair Agree To MergeAnother Merger Is In The Works In The I-Gaming Industry |
|
On Wednesday, Paddy Power and Betfair, two leading online gaming companies, agreed to an deal in principle to join forces, according to a press release.
The new company would be called Paddy Power Betfair. Paddy Power is the offeror.
Paddy Power shareholders would own 52 percent, and Betfair shareholders would own 48 percent.
Gary McGann, Chairman of Paddy Power, would become Chairman of the Board of the combined group. Breon Corcoran, CEO of Betfair, would become CEO.
“The structure of the possible merger is being finalized with a view to maximizing benefits to shareholders and other stakeholders, and it is expected that the combined group will maintain a significant presence in Ireland and in the UK,” the press released said.
The companies said that the deal would create “one of the world’s largest public online betting and gaming companies with revenues of over £1.1 billion (€1.5 billion) in their last financial years.” They added that the new company’s “scale and capabilities would leave it better placed to compete in existing and new markets.” Betfair already has an online gaming site in New Jersey.
Other terms of the merger are currently being negotiated.
The agreement comes as Bwin.Party Digital Entertainment considers competing takeover offers from 888 Holdings and GVC Holdings. Last summer, Amaya Gaming acquired the parent company of PokerStars and Full Tilt for $4.9 billion. Firms say the regulatory and marketing costs associated with online gaming are driving the rush of mergers in recent years.
Copyright © 2001-2024
CardPlayer.com. All rights reserved.
