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 offer that would create among the world's biggest online wagering and video gaming business.
Final information are still being worked out, however the companies said the offer had "engaging strategic logic" and enhanced their market position.
Paddy Power shareholders would own 52% of the combined service, with Betfair financiers owning the staying 48%.
The combined business would have yearly revenues of some ₤ 1.1 bn.
"Discussions remain ongoing regarding the other regards to the possible merger," a declaration said on Wednesday, external.
The new group would be the UK online market leader with a 16% share, according to industry data, passing a merged Ladbrokes/Coral on 14%, as well as William Hill and the privately owned Bet365.
Shares in Betfair skyrocketed 17% to ₤ 30.60 on Wednesday, while Paddy Power jumped more than 18% in Dublin.
If the offer goes on, Breon Corcoran, manager of Betfair, would end up being president of the combined group, while his counterpart at Paddy Power, Andy McCue, would become chief running officer.
'Everything about scale'
The combined company prepares to maintain the "distinct and complementary" Betfair and Paddy Power brand names in Europe.
Mr Corcoran stated: "We fundamentally think this market is all about scale. By creating two distinct however 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 chief financial officer, said the mix was an "appealing opportunity".
"The scale and ability is unsurpassed and would leave us in a better location to complete in our current markets, where competition is intense," he stated.
Betfair and Paddy Power take a ₤ 5bn merger punt
26 August 2015
Betfair and Paddy Power are set to merge in a ₤ 5bn offer that would create among the world's biggest online wagering and video gaming business.
Final information are still being worked out, however the companies said the offer had "engaging strategic logic" and enhanced their market position.
Paddy Power shareholders would own 52% of the combined service, with Betfair financiers owning the staying 48%.
The combined business would have yearly revenues of some ₤ 1.1 bn.
"Discussions remain ongoing regarding the other regards to the possible merger," a declaration said on Wednesday, external.
The new group would be the UK online market leader with a 16% share, according to industry data, passing a merged Ladbrokes/Coral on 14%, as well as William Hill and the privately owned Bet365.
Shares in Betfair skyrocketed 17% to ₤ 30.60 on Wednesday, while Paddy Power jumped more than 18% in Dublin.
If the offer goes on, Breon Corcoran, manager of Betfair, would end up being president of the combined group, while his counterpart at Paddy Power, Andy McCue, would become chief running officer.
'Everything about scale'
The combined company prepares to maintain the "distinct and complementary" Betfair and Paddy Power brand names in Europe.
Mr Corcoran stated: "We fundamentally think this market is all about scale. By creating two distinct however 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 chief financial officer, said the mix was an "appealing opportunity".
"The scale and ability is unsurpassed and would leave us in a better location to complete in our current markets, where competition is intense," he stated.