Bookmaker Paddy Power and online betting exchange Betfair have reached an agreement on a merger valued at £5bn.
The new company, which will be named Paddy Power Betfair plc, will be one of the largest public online betting and gaming companies by revenue in the world.
The merger will see Paddy Power shareholders owning 52 per cent of the new entity, while Betfair’s will own the remaining 48 per cent. Prior to completion, Paddy Power shareholders will receive a special dividend of €80m.
Gary McGann, chairman of Paddy Power, will become chairman of Paddy Power Betfair, while Betfair CEO Breon Corcoran will be named CEO and executive director of the newly merged company. The company’s headquarters will be in Dublin, Ireland, although the business will maintain a significant presence in both Ireland and the UK.
“The merger of Paddy Power and Betfair will create a company of world-class capability and people who will deliver substantial up-front synergies and a platform for very exciting business expansion,” said McGann.
Betfair chairman Gerald Corbett said the merger makes “huge strategic sense.”
He added: “Under the guidance of a strong and proven combined management team, this merger truly represents an attractive opportunity for both Paddy Power and Betfair to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value."
