Betfair and Paddy Power Take a £5bn Merger Punt
Betfair and Paddy Power take a ₤ 5bn merger punt
26 August 2015
Betfair and Paddy Power are set to merge in a ₤ 5bn deal that would create among the world's greatest online betting and video gaming business.
Final information are still being worked out, however the companies stated the deal had "compelling tactical logic" and enhanced their market position.
Paddy Power investors would own 52% of the combined business, with Betfair financiers owning the staying 48%.
The combined service would have yearly incomes of some ₤ 1.1 bn.
"Discussions remain ongoing relating to the other regards to the possible merger," a statement said on Wednesday, external.
The brand-new group would be the UK online market leader with a 16% share, according to market information, passing a merged Ladbrokes/Coral on 14%, in addition to William Hill and the privately owned Bet365.
Shares in Betfair soared 17% to ₤ 30.60 on Wednesday, while Paddy Power jumped more than 18% in Dublin.
If the deal goes on, Breon Corcoran, boss of Betfair, would end up being primary executive of the combined group, while his counterpart at Paddy Power, Andy McCue, would end up being chief running officer.
'Everything about scale'
The combined company prepares to retain the "distinctive and complementary" Betfair and Paddy Power brands in Europe.
Mr Corcoran stated: "We basically believe this market is everything about scale. By assembling 2 unique but phenomenally strong brand names, we'll have a market leading position in the UK, Ireland, Australia and in the United States."
Cormac McCarthy, Paddy Power's primary monetary officer, said the mix was an "attractive chance".
"The scale and capability is unsurpassed and would leave us in a better place to compete in our current markets, where competition is intense," he said.
Betfair and Paddy Power take a ₤ 5bn merger punt
26 August 2015
Betfair and Paddy Power are set to merge in a ₤ 5bn deal that would create among the world's greatest online betting and video gaming business.
Final information are still being worked out, however the companies stated the deal had "compelling tactical logic" and enhanced their market position.
Paddy Power investors would own 52% of the combined business, with Betfair financiers owning the staying 48%.
The combined service would have yearly incomes of some ₤ 1.1 bn.
"Discussions remain ongoing relating to the other regards to the possible merger," a statement said on Wednesday, external.
The brand-new group would be the UK online market leader with a 16% share, according to market information, passing a merged Ladbrokes/Coral on 14%, in addition to William Hill and the privately owned Bet365.
Shares in Betfair soared 17% to ₤ 30.60 on Wednesday, while Paddy Power jumped more than 18% in Dublin.
If the deal goes on, Breon Corcoran, boss of Betfair, would end up being primary executive of the combined group, while his counterpart at Paddy Power, Andy McCue, would end up being chief running officer.
'Everything about scale'
The combined company prepares to retain the "distinctive and complementary" Betfair and Paddy Power brands in Europe.
Mr Corcoran stated: "We basically believe this market is everything about scale. By assembling 2 unique but phenomenally strong brand names, we'll have a market leading position in the UK, Ireland, Australia and in the United States."
Cormac McCarthy, Paddy Power's primary monetary officer, said the mix was an "attractive chance".
"The scale and capability is unsurpassed and would leave us in a better place to compete in our current markets, where competition is intense," he said.