The two companies claim that the newly-merged gambling giant will be the world’s largest online betting and gaming operator.
Flutter Entertainment – whose brands presently include FanDuel, Paddy Power and Betfair – and TSG said in a joint statement that the combined group would have recorded full-year revenue of £3.8 billion (CA$6.2 billion) in 2018.
Flutter shareholders will own 54.6 per cent of the new company and TSG shareholders own 45.4 per cent. The combination is expected to deliver revenues of £140 million (CA$227 million) each year, before tax.
The new senior management team of the combined group will include Flutter CEO Peter Jackson as group CEO, TSG CEO Rafi Ashkenazi as COO and Flutter chair Gary McGann as group chair.
“The combination represents a great opportunity to deliver a step change in our presence in international markets and ensure we are ideally positioned to take advantage of the exciting opportunity in the US through a media relationship with FOX Sports as well as our development of US sports betting through Flutter’s FanDuel and TSG’s FOX Bet brands,” Mr Jackson said.
“The combination will turbocharge our existing four-pillar strategy and provide world-class capabilities across sports betting, gaming, daily fantasy sports and poker, as well as greater geographical and product diversification.“
“We believe the combination of Flutter and TSG will deliver substantial value for shareholders. We will have an exceptional portfolio of leading recreational brands and best-in-class products on industry-leading technology platforms.”
Mr Jackson, Mr Ashkenazi and Mr McGann will also form part of the new company board.
Flutter Entertainment’s share price was up 20.51 per cent at time of writing.
Flutter bought the US daily fantasy sports site FanDuel in May 2018. It was the same month that saw the legalization of sports betting in the US, following a decision by the Supreme Court.
Meanwhile, TSG, which also owns Sky Betting & Gaming, aimed at clients in the UK, announced a 25-year partnership with Fox Sports in May 2019 to provide sports betting to the US.
The deal gives Fox Sports the right to acquire an approximately 18 per cent stake in FanDuel at its market value in 2021. Flutter’s other US partners will receive equity in Fox Sports.