Two Big Online Gambling Companies Propose a Merger

Published Thursday, August 27, 2015 - Online-Casinos.com
Two Big Online Gambling Companies Propose a Merger

Consolidation and mergers have always spelled success in the online gambling industry. A recent announcement that the iconic Irish book maker Paddy Power will merge with British betting exchange Betfair appears to be a good fit for both firms. The two companies will get together if the proposal goes through and form a totally new entity to become one of the world’s largest public online betting and gambling companies. Paddy Power shareholders will own 52% of the new firm, with Betfair shareholders owning 48% of the issued share capital in the combined company. Upon completion of the proposed merger Paddy Power shareholders would receive a special dividend of €80 million.

Paddy Power and Betfair said in a joint statement, “The possible merger would create one of the world's largest public online betting and gaming companies by revenue with enlarged scale, capability and distinctive and complementary brands,” the statement continued to add, “The combination has compelling strategic logic and represents an attractive opportunity for both companies to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value.”

executive officer of Betfair, Breon Corcoran  commented on the recently reported financial results and the possible merger, saying, “Betfair's current momentum is strong and the business remains well placed to execute against our strategy and to continue to deliver profitable growth.” Corcoran added, “The proposed merger with Paddy Power is hugely exciting; it would create a truly global sports betting group with unmatched products and talent, and significantly enhanced scale.” “The combined business would be one of the world's largest online sports betting operators, with revenues totalling more than £1 billion.”

Paddy Power posted net revenue of €527.8 million, an increase of 33% recorded in the first half of last year and chief executive officer McCue said, “We have made substantial progress implementing the strategy we set out in March, with further payback to come from new mobile product releases, refreshed marketing campaigns and efficiency gains.”

 

 

 

 

Related news

Return to Latest News