The boards of Paddy Power and Betfair have agreed terms of the all-share merger of the two companies. The new entity will be known as Paddy Power Betfair Plc and will be headquartered in Dublin.
In recent weeks, betting and gaming rivals Paddy Power and Betfair agreed to a potential merger, which will create one of the world’s largest betting and gaming platforms.
The merger will result in Paddy Power shareholders owning 52pc of the company and Betfair shareholders will own 48pc of the company.
The merger will result in an €80m windfall for Paddy Power shareholders.
Paddy Power Betfair’s new A-team for the betting business
The boards of the company believe the merged entity will enjoy cost synergies of £50m.
Gary McCann, chairman of Paddy Power, will become the chairman of Paddy Power Betfair.
Betfair CEO Breon Corcoran will become CEO and executive director of Paddy Power Betfair.
Paddy Power CEO Andy McCue will become COO and executive director of the new company, while Betfair CFO Alex Gersh will become CFO and executive director of Paddy Power Betfair.
Paddy Power Betfair Plc will be headquartered in Dublin. However, what is not clear is how many layoffs – if any – will occur if roles are duplicated.
The combined company will maintain its presence on the Dublin and London stock exchanges.
After the merger, the combined company will be eligible for inclusion in the FTSE UK index series.
“The merger of Paddy Power and Betfair will create a company of world-class capability and people who will deliver substantial upfront synergies and a platform for very exciting business expansion,” Paddy Power chairman Gary McGann said.
“The combination of Breon, Andy and their colleagues in this merger of equals comprises ‘the A-team’ in the business with the ambition to create a unique global player in a very dynamic industry.”
Online betting image via Shutterstock