Betfair and Paddy Power merger details announced
Paddy Power and Betfair have announced the details of their merger.
Although the deal has created a combined company with a worth of £5 billion, the firms will continue to operate as separate brands.
Paddy Power, whose shareholders will own 52% of the business, will continue to be based in Dublin. Chairman Gary McGann will serve the new company in the same capacity.
When interviewed by igamingbusiness.com, McGann explained that: “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.”
The new arrangement may result in an adjustment in the size of the workforce and in the number of shops – Paddy Power and Betfair currently run 336 and 226 stores respectively.
Yesterday’s announcement also firms confirmed that Paddy Power shareholders will receive a special dividend of €80 million, with shareholders expected to vote on the deal in December and the merger due to be completed in the first quarter of 2016.
Asked to explain the latest developments, Betfiar chairman Gerald Corbett said that the deal makes “huge strategic sense by bringing together two industry leading and successful businesses and providing enlarged scale, capability and distinctive, complementary brands”.