logo-loader
viewFlutter Entertainment PLC

Paddy Power Betfair agrees deal to merge its US operations with fantasy sports firm FanDuel

The bookmaker said it will contribute its existing US assets as well as US$158mln of cash, which will be used to pay down existing FanDuel net debt which stood at US$76mln at the end of March

Roulette wheel
Paddy Power Betfair will have 61% ownership of the combined business and FanDuel investors will own 39%

Paddy Power Betfair PLC (LON:PPB) announced late on Wednesday that it has agreed a deal to merge its US operations with US fantasy sports firm FanDuel Inc.

The FTSE 100-listed bookmaker said it will contribute its existing US assets as well as US$158mln of cash, which will be used to pay down existing FanDuel net debt which stood at US$76mln at the end of March.

READ: Power Betfair up as it confirms talks to buy FanDuel

Paddy Power Betfair will have 61% ownership of the combined business and FanDuel investors will own 39%. The Irish group will also have an option to take its ownership of the business to 80% after three years and to 100% after five years.

The Irish group aid the deal strengthens its opportunity to target the prospective American sports-betting market, after a US Supreme Court ruling opened the door to legal sports betting across the country last week.

FanDuel, which is headquartered in New York, had revenue of US$124mln and 1.3mln active customers in 2017, with a 40% market share of the US daily fantasy-sports market.

In morning trading in London on Thursday, Paddy Power Betfair shares were up 3.3% at 8,915p.

Quick facts: Flutter Entertainment PLC

Price: 8320 GBX

LSE:FLTR
Market: LSE
Market Cap: £6.51 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Emmerson Resources discusses recent diamond drilling...

Emmerson Resources Ltd (ASX:ERM) managing director and CEO Rob Bills updates Proactive on the first diamond drilling activities at the Whatling Hill Project in NSW.  A 1,500-metre reverse circulation (RC) and diamond drilling program is targeting an interpreted porphyry copper-gold...

2 days ago

RNS

Director/PDMR Shareholding

1 day, 7 hours ago

Holding(s) in Company

5 days, 6 hours ago

Q3 2019 Trading Update

1 week, 3 days ago

Holding(s) in Company

1 week, 6 days ago

Total Voting Rights

2 weeks, 2 days ago

Holding(s) in Company

2 weeks, 4 days ago

Holding(s) in Company

2 weeks, 5 days ago

Holding(s) in Company

3 weeks, 2 days ago

2 min read