Internet betting group Paddy Power Betfair officially announced this week that they've reached a purchase agreement to pick up U.S. Daily Fantasy Sports business FanDuel, giving the company an important foothold throughout the country for an upcoming boom in legal sportsbetting.
FanDuel serves as one of the two largest daily fantasy sports companies in America, and they have an extensive list of existing players in the country. That list will be of considerable value to Paddy Power Betfair as states pass sportsbetting legislation. Paddy Power Betfair will pay out $158 million in cash and other assets for a 61% share in the company, with current FanDuel shareholders holding 39%. Options to buy 80% of the company after three years, and 100% after five years have been built into the deal.
FanDuel will be merged into the group's Betfair U.S. business and operate under that umbrella.
Commenting on the deal FanDuel CEO Matt King said, "The combination of brands and team, along with a shared culture and vision for the future, creates the leading gaming destination for US sports fans."
Paddy Power Betfair CEO Peter Jackson added: "We are excited to add FanDuel to the Group's portfolio of leading sports brands. This combination creates the industry's largest online business in the US, with a large sports-focused customer base and an extensive nationwide footprint."