MGM Launching the Strip’s First eSports Venue [...]
Paddy Power and Betfair Agree on £5b Merger
- September 9, 2015 By Oliver Young -
The directors of Paddy Power PLC and Betfair PLC have informed shareholders that a merger worth £5 billion has been agreed between the two companies. As The Guardian reports, the shareholder benefits include 0.4254 new shares for a single Betfair share. In additional, a special dividend of €80 million is planned for shareholders of Paddy Power once the merger is completed.
The statement reveals that cost and revenue synergies had been identified and that those support significant shareholder “value creation opportunity of the merger.” Also, it’s highlighted in the statement that the Boards of both companies believed the new group would “achieve recurring annual pre-tax cost synergies of approximately £50 million.”
The Boards of Paddy Power and Betfair also noted that the benefit of the “full level of identified synergies” would be achieved in the third year after the completion is made. Since the newly formed group would be able to offer new services and products to new and existing customers, the Boards expressed hopes that there was “a significant opportunity for revenue synergies.”
Strategic Plan for the Merger of the Companies
Naturally, the merger has been well planned and hence the Boards were able to briefly point out the key points of the strategic plan for the merge of the companies. For example, the new entity is expected to have an enhanced scale and capabilities that will make it possible for the combined companies to be a stronger competitor in the market.
Additionally, it is expected the combined strengths of two such well-established companies to result with increased revenues as well as to provide customers with new high quality products. Another objective for the Paddy Power-Betfair merger would be creating a diversified group that will own strong platforms in both UK’s and Ireland’s online and land-based gaming industry.
Not surprisingly, the new shining star in the market developed a dual brand strategy for Europe in order to utilise the complementary as well as the distinctive brands of the companies.
Crucial Information about the Newly Founded Group
The statement provided by the Boards of directors also includes crucial information about the new Group such as top managements, headquarters and planned listings. Hence, people can expect to see Paddy Power’s Chairman Gary McGann as Chairman of Paddy Power Betfair, whereas Betfair’s CEO Breon Corcoran is set to become the CEO and EXD.
The CEO of Paddy Power, Andy McCUe, is expected to become COO and an EXD of the new entity, wlihe Betfair’s CFO Alex Gersh will keep this position in Paddy Power Betfair as well. Furthermore, the Board of the merged company will have non-executive directors from both Paddy Power and Betfair.
Paddy Power Betfair’s headquarters will be located in Dublin, but the company will most certainly have a strong presence in the United Kingdom as well. A premium listing on the London Stock Exchange is planned for this new gambling operator as well as a secondary listing on the Irish Stock Exchange.
YOU MIGHT BE ALSO BE INTERESTED IN THESE:
Pennsylvania Gambling Bill Finally Reaches Senate [...]
Tottenham’s Elevator Programme Gets Funds from William Hill [...]