Big betting deal
FanDuel drawn into Flutter’s global merger with Stars Group
FanDuel now part of online leader
Flutter Entertainment – formerly Paddy Power Betfair – has announced an all-shares merger with Nasdaq-listed Stars Group, owner of Poker Stars and Sky Bet.
It will create one of the world’s largest online betting and gaming operators with combined annual revenues last year totalling £3.8 billion.
The deal also embraces the Edinburgh-founded FanDuel fantasy sports company which was acquired by Paddy Power ‘s US business last year.
The merged group will be boosted by a partnership in the United States with FOX Sports, which will have the right to acquire an 18.5% stake in FanDuel US from 2021.
Flutter said the move will deliver “pre-tax cost synergies” of £140m a year along with potential revenue cross-sell in international markets and lower finance cost.
“The combined group will be a strong voice in the promotion of responsible gaming worldwide and will lead industry standards on the protection of customers, whilst building sustainable relationships with them,” said Flutter chair Gary McGann.
Its shares were up by almost on a fifth on the announcement.