Paddy Power shareholders are set to own 52 percent of the group formed through the bookmaker’s blockbuster merger with Betfair, whose investors will take ownership of the remaining amount.
Announced last month, a provisional £5 billion deal has been agreed between the two industry giants – as they look to create an industry-leading firm in the British online gambling market.
The merger is set to be completed in the first quarter of 2016, with the new entity expected to be called Paddy Power Betfair plc and Betfair’s ceo Breon Corcoran named as the chief executive of the new company. As part of the agreement, Paddy Power shareholders will receive a special dividend of €80m (£58.29m) immediately prior to completion.
Merger ‘Makes Huge Strategic Sense’
With Paddy Power and Betfair set to come together in a huge deal in the betting industry, Betfair chairman Gerald Corbett has spoken about the benefits of a merger between the two popular bookmakers.
Corbett said: “The merger of Paddy Power and Betfair will create one of the world’s largest public online betting and gaming companies. The combination makes huge strategic sense by bringing together two industry leading and successful businesses and providing enlarged scale, capability and distinctive, complementary brands.
“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.”
Gary McGann, the chairman of Paddy Power, added: “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.”
Paddy Power is Ireland’s biggest bookmaker and operates betting shops both in the Republic Of Ireland and in the UK in addition to telephone and internet betting. Over the years, Paddy Power has become renowned for its marketing and special betting offers and competitive concessions.
Meanwhile, Betfair is the pioneer of the peer-to-peer betting exchange which allows members to place bets with each other, a concept that proved popular enough to make Betfair the world’s biggest online sports betting provider.
Betfair also operates Poker, Casino, Bingo and Games websites and has a fantastic Sportsbook service as well. Betfair’s role on the betting exchange was that of facilitator, providing a platform for members to bet with each other.
Now Betfair dons the mantle of bookmaker offering members the option of taking fixed odds on many of the markets available on the exchange.