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Paddy Power and Betfair set for merger

As the industry consolidates further, Paddy Power and Betfair are set to merge in a deal worth £5billion. 

Paddy Betfair Plc merger

 The merger would create one of the world’s biggest online gaming and betting companies. The combined company would be called Paddy Power Betfair plc and would have an estimated annual revenue of over £1.1billion. Paddy Power’s finance director Cormac McCarthy said: “These are two very strong businesses with complementary offerings that have a lot in common. We have seen increased regulation and taxes across the piece and scale has value.” Paddy Power logo A statement released last week read: “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.” Under the proposed deal Paddy Power shareholders would retain 54% of the company’s shares with Betfair shareholders owning the remaining 48%. As news of the merger was announced both companies saw their share prices rise significantly. Paddy Power logo If the deal is completed Betfair’s chief executive and former Paddy Power chief operating officer, Breon Corcoran, will be in charge the new group. Andy McCue, chief executive at Paddy Power would be chief operating officer and Gary McGann, chairman of Paddy Power, would chair the newly formed company. 

New company would have largest share of UK market

 The combined company would enjoy the largest share of the UK market with 16%, overtaking the recently merged Ladbrokes Coral’s 14% as well as William Hill and bet365. This is the latest of a number of mergers as the betting and gaming industry consolidates due to new regulations, taxes and the cost of software as demand for online services continues to grow.