Betting and gaming rivals Paddy Power and Betfair have agreed to a potential merger, which would create one of the world’s largest betting and gaming platforms.
The two companies announced to the stock exchange this morning that they plan to create Paddy Power Betfair Group.
Paddy Power shareholders would own a 52pc share in the new equity and prior to completion would also receive a special dividend of €80m.
The potential merger is anything but a done deal and negotiations will continue, as well as due diligence processes. The proposed merger is also subject to Irish takeover rules.
The potential merger would create one of the world’s largest public online betting and gaming companies by revenue and scale.
Under the proposed terms, Gary McGann, chairman of Paddy Power, would become chairman of the board of the combined group.
Breon Corcoran, CEO of Betfair, would become CEO of the combined group. Andy McCue, CEO of Paddy Power, would become COO and an executive director of the combined group. Alex Gersh, CFO of Betfair, would become CFO and an executive director of the combined group;
The two companies combined would have revenues of more than £1.1bn (€1.5bn) and have a complementary online business and geographic mix.