Paddy Power And Betfair Merge In £5 Billion Deal
In the last few weeks there have been some major deals in the gaming industry. Following the acquisition of bwin.party by GVC Holdings. Paddy Power and Betfair have agreed on a £5 billion merger that will create one of the largest online gambling business. The merger will follows last month’s reports of the planned merger and will see a combined group that has over 7000 employees and £1.2 billion in sales.
The new group will be called Paddy Power Betfair with their headquarters in Dublin but still will maintain a significant presence in the UK. In terms of the deal Paddy Power shareholders will own 52 percent of the combined business with Betfair investors owning the remaining 48 percent. Job cuts are expected as part of the annual cost savings plans which will involve headcount reduction. It is expected that up to 80 percent of the combined annual revenues will come from the online business.
Chairman of Paddy Power, Gary McGann said,” 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.”
Betfair chairman, Gerald Corbett gave his thought on the merger and said the deal makes “huge strategic sense by bringing together two industry leading and successful businesses and providing enlarged scale, capability and distinctive, complementary brands”.
The move follows other gaming giants like Ladbrokes and Gala Coral who also agreed on a £2.3 billion merger in July. This latest deal is aimed at expanding UK operations which have been hit hard by new tax regimes and will see the new group expand in over 100 countries across Europe, the US and Australia.