Paddy Power steps up US expansion with FanDuel acquisition

Paddy Power steps up US expansion with FanDuel acquisition

Thursday, May 24, 2018 Posted by Joseph Streeter
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The deal is a landmark one as European operators step up US efforts

Paddy Power Betfair (PPB), has confirmed that it is stepping up its US expansion by acquiring renowned daily fantasy sports operator FanDuel.

To maximise the purchase, the firm has detailed plans to merge its Betfair US division with FanDuel’s operation, as it looks to take advantage of the overturning of PASPA earlier in the month.

Made up of the Betfair US racing and wagering offering, the new subsidiary will likely be worth around $600 million, in its statement Paddy Power Betfair outlined: “The transaction strengthens the Group’s opportunity to target the prospective US sports betting market through the addition of a strong brand, large existing customer base and talented team."

Matt King, CEO of FanDuel, commented: "We are excited to bring these two great businesses together. 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."

PPB will have operational control of the business and will hold the right to appoint the enterprise’s CEO and the majority of the Board of Directors.

Peter Jackson, CEO of Paddy Power Betfair, commented on the transaction: “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.

“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 well placed to target the prospective US sports betting opportunity.”

Totally Gaming says: Just a few years ago, FanDuel was touted at being worth in excess of a billion dollars, although that value may decreased slightly in recent years it means that this deal, which was first touted last week provides Paddy Power Betfair an opportunity to take advantage of FanDuel’s strong US presence to create a strong sports betting operation in the US.

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