In breaking news, the owner of the gaming company Paddy Power is about to join forces with a Canadian rival. This will create the biggest gaming operator of online betting in the world, with a combined game offering of casino, sports betting, fantasy sports, poker, and free-to-play games.
The merged company will amalgamate their joint forces of 13 million customers across more than 100 global gaming markets. In the second quarter of 2020, the shareholders of both Flutter and TSG will vote on the planned transaction, with a final contract set in place by the third quarter of the same year.
The two corporations Flutter Entertainment (Paddy Power owner), and The Stars Group Inc (TSG), a Canadian gaming and online gambling company with headquarters in Toronto, Canada, have hammered out a deal that sees the Dublin based Paddy Power buy out TSG, bringing together the two giants in a merger set to be worth €4.26 Billion in annual turnover.
The combined group will use Dublin as their headquarter base and will be listed on the London Stock Exchange as well as the Euronext Dublin. The merger will focus on progressing Flutter’s strategic growth in its main gambling markets of the UK, Ireland and Australia. They also have their sights set on expansion in the European countries of Spain, Germany and Italy to develop new and stronger gambling bases.
The new group also plan to target the United States, after the US Supreme Court gave the go-ahead for states to legalize sports betting last year. According to the sports media company, The Action Network, 18 US states have already gone ahead to legalize online sports betting with more expected to follow suit.
The board of the newly formed group will be comprised of 14 members, with the current chairman of Flutter, Gary McGann, heading up the board and taking on the equivalent role in the newly-merged company. The current CEO of Flutter, Peter Jackson will move into the parallel role, and the CEO of the Stars Group, Rafi Ashkenazi, will now become the COO for the new group.
McGann stated that combining these two strong and complementary businesses was an exciting transformation that would create a new global leader within the online sports betting and gaming industry, which was indeed one of the fastest-growing.
He went on to say that Peter Jackson’s leadership would unify the management team giving it the experience needed for the successful integration of the two companies while minimizing any disruption at this time of change within the sector.
He added that they intended to be a leader in the promotion of responsible gambling internationally, with a focus on customer protection, and building sustainable relationships with them.
According to Refinitiv data, on Tuesday, the closing value of both companies was worth almost $12B. Shares in Flutter Entertainment were trading up by 12.86% in London on Wednesday morning, while shares in The Stars Group Inc. closed up 2.12% at CA$20.25 per share in Toronto on Tuesday. The deal will see Flutter shareholders owning about 55% of the combined new group, and TSG shareholders owning slightly above 45%.