Paddy Power Betfair and FanDuel Enter Merger Agreement to Bring Together US Businesses
Combined Company to Capture US Market Opportunity, Create Largest Online Sports Destination in the United States
NEW YORK, May 23, 2018 — Paddy Power Betfair (LON:PPB) and FanDuel today announced a definitive agreement under which the companies will merge their US businesses, bringing together the leader in international sports betting and gaming and the company that redefined fantasy sports.
The transaction combines FanDuel’s world-class technology, well-recognized brand, and large, highly engaged user base with Betfair US’s existing TVG horseracing betting network and media business along with its online casino business in New Jersey. The combined business is incredibly well-positioned to capitalize on the sports betting market opportunity in the United States.
“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,” said Peter Jackson, Chief Executive, Paddy Power Betfair. “The Group has leading sports betting operating capabilities globally and strong operations on the ground in the US. Together with our substantial financial firepower, we believe we are now exceptionally well placed to target the prospective US sport betting opportunity.”
Bringing together the shared talent, expertise, technology, and resources of FanDuel and Betfair US allows the combined company to deliver even better features for sports fans, including new contests, new content, sports betting offerings, and an enhanced overall user experience.
The merged entity will invest in developing new products for consumers, an expanded workforce, and other growth opportunities. Together, the combined entity will also look for ways to drive revenue synergies, including cross-selling, and integrating aspects of the companies’ digital products.
“FanDuel and Betfair US share an enthusiasm for innovation and, as a result of today’s announcement, are prepared to lead the charge into the US sports betting market,” said Matt King, CEO, FanDuel. “The combination of our brands and team, along with a shared culture and vision for the future, will allow us to create the leading gaming destination for sports fans everywhere.”
The transaction is subject to customary closing conditions and regulatory approvals and is expected to be complete in Q3 2018.
Moelis & Company LLC acted as exclusive financial advisor to FanDuel, and Wilson Sonsini Goodrich & Rosati and Shepherd and Wedderburn LLP acted as legal advisors to FanDuel in relation to the Transaction. Goldman Sachs acted as exclusive financial advisor to Paddy Power Betfair, and Blank Rome LLP acted as legal advisors to Paddy Power Betfair in relation to the Transaction.
About Paddy Power Betfair
Paddy Power Betfair plc is one of the leading sports betting and gaming groups in the world. The business was formed from the February 2016 merger of Paddy Power plc and Betfair Group plc and has four divisions: Online, which runs two of Europe’s leading online sports betting and gaming brands, Paddy Power and Betfair, as well as a telephone based sportsbook and a number of B2B partnerships, Australia, consisting of Sportsbet, the market leader in the fast-growing Australian online betting market, US, which combines TVG, America’s leading horseracing TV and wagering network, Betfair Casino, an online casino in New Jersey, the Betfair New Jersey Exchange and DRAFT, an early-stage operator in daily fantasy sports, Retail, which operates 623 Paddy Power betting shops across the UK and Ireland.
Founded in 2009, FanDuel has redefined fantasy sports in pursuit of its mission of making sports more exciting. FanDuel offers a multitude of one-day, weekly and season-long game options for NFL, NBA, MLB, NHL, Golf, NASCAR, WNBA, and the EPL, with new public and private leagues forming daily, ranging in size from two to thousands of players. FanDuel drives fan engagement, hosting numerous live events and creating once-in- a-lifetime experiences for sports fans throughout the year. FanDuel is based in New York City with offices in Los Angeles, Orlando, Edinburgh, and Glasgow. FanDuel has raised funding from KKR, Google Capital, Time Warner/Turner Sports, Shamrock Capital, NBC Sports Ventures, Comcast Ventures, Pentech Ventures, Piton Capital and Verizon Ventures.