Corporate management of Pady Power and Betfair have issued a joint statement regarding the details of the proposed merger between the two companies, revealing several reasons for the move as well as the company's structure.
The new company will see each share of Betfair converted to 0.4254 of the new Paddy Power Betfair company, and the firm will be listed on the London Stock Exchange. A secondary stock listing will be offered on the Irish Stock Exchange. The company's headquarters will be in Dublin, Ireland.
Corporate structure will see Paddy Power's Chairman Gary McGann becoming the Chairman of the new company, while Betfair's CEO Breon Corcoran will be the CEO and Executive Director of Paddy Power Betfair. Paddy Power's CEO Andy McCue will now be the COO of the company, with Betfair CFO Alex Gersh maintaining his position while picking up the title Executive Director of the merged business.
Reasons for the merger include:
Enhanced scale and capabilities that will better place the combined companies to compete in existing and new markets;
Complementary products, channels and capabilities will give rise to revenue synergy opportunities through the ability of the combined group to offer new products and services to existing and new customers;
Create a diversified group with strong platforms across online and retail in the UK and Ireland, and attractive international growth opportunities in Australia, the US and Continental Europe;
Includes a dual-brand strategy in Europe enabling the merged group to utilise more effectively the distinctive and complementary brands of Paddy Power and Betfair; and
Give cost synergies from efficiencies which reflect the complementary nature of the businesses.
Speaking about the merger Paddy Power Chairman Gary McGann said, The merger of Paddy Power and Betfair will create a company of world class capability and people who will deliver substantial up-front synergies and a platform for very exciting business expansion. The combination of Breon, Andy and their colleagues in this merger of equals comprises "the A team" in the business with the ambition to create a unique global player in a very dynamic industry."
Betfair Chairman Gerald Corbett added: "The merger of Paddy Power and Betfair will create one of the world's largest public online betting and gaming companies. The combination makes huge strategic sense by bringing together two industry leading and successful businesses and providing enlarged scale, capability and distinctive, complementary brands. Under the guidance of a strong and proven combined management team, this merger truly represents an attractive opportunity for both Paddy Power and Betfair to enhance their position in online betting and gaming and to deliver synergies, customer benefits and shareholder value."