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Betfair Paddy Power

Paddy Power and Betfair agree terms on merger

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By Tony Connelly, Sports Marketing Reporter

August 26, 2015 | 3 min read

Bookmakers Paddy Power and Betfair have agreed terms on a merger which will form the world’s largest online betting and gaming companies.

The deal gives the Irish betting firm, Paddy Power, a 52 per cent ownership of the company leaving Betfair with 48 per cent.

The new company is expected to have revenues of more than £1.1bn and will have opportunities to expand in Europe, the US and Australia. It will be run by Betfair’s chief executive, Breon Corcoran, who joined from Paddy Power three years ago and is credited with increasing Betfairs UK numbers by 250 per cent as well as lifted its share value from about £750m to £2.4bn. Paddy Power’s chief executive, Andy McCue, will be chief operating officer and Gary McGann, chairman of Paddy Power, is set to chair the combined company.

In a combined statement Paddy Power and Betfair said the merger has “a 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”.

Both companies have been highly successful in their business strategies; Paddy Power is renowned for its controversial ads and operates on UK and Irish high streets as well as online, while Betfair’s online gambling exchange allows punters to bet against each other in real time rather than accepting bookies’ odds.

The merger follows on from a number of major deals which have been made in the gambling sector recently as a result of new taxes on online gambling around the world and the need to invest in marketing and technology to compete in the fast-changing world of internet betting.

In June, Ladbrokes and Gala Coral revealed plans to create the UK’s biggest bookmaker while 888 has agreed to buy its rival Bwin.party however GVC Holding, owner of Sportingbet, is reportedly trying to hijack the deal to buy Bwin.

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