PADDY POWER and Betfair have agreed the terms of a multi-billion pound merger to create one of the world’s largest online gambling businesses.
The deal was announced in August and will mean that the group – to be named Paddy Power Betfair – will be headquartered in Dublin.
The combined business will have a market value of nearly £6billion and annual revenues of more than £1.2billion.
While the company aims to expand further across continental Europe, the US and Australia, it plans to maintain a “significant presence” in Britain and Ireland.
But the move could result in job losses with plans for a £50million annual cost savings initiative after the merger, the companies warned.
Paddy Power chairman Gary McGann, who will chair the new company, 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.”
The company will continue to run separate brands in Britain, Ireland and Italy after the merger.
Under the terms of the deal, Paddy Power shareholders would own 52 per cent of the company, with Betfair shareholders owning 48 per cent.
The deal will combine Paddy Power’s 336 shops in Britain and 252 in Ireland with Betfair’s online betting exchange.
With around 80 per cent of the combined annual revenues coming from the companies’ online business, the move will see them become one of the world’s biggest online betting and gaming companies.
