Two of the biggest internet betting groups Flutter Entertainment (PDYPF), which owns Irish gambling firm Paddy Power and The Stars Group (TSG) of Canada, owner of the largest poker site in the world, Poker Stars have announced that they have entered into a deal to merge that will see them becoming the largest internet gambling company in the world.
In terms of the agreement there will be a share swap deal of $6 billion with the groups combining to become Flutter-TSG. The combined revenues for the companies amounted to £3.8 billion in 2018 and will also oversee combined brands, Paddy Power, Full Tilt Poker and Poker Stars. Both Flutter Entertainment and The Stars Group participate in individual state markets that offer casino games and sports betting services.
According to Refinitiv data, last Tuesday’s closing prices of the two companies were together worth almost $12 billion.
The deal will also see the main headquarters being in Dublin with their main listing in London. Flutter shareholders will have control of 54.64% in the new company while The Stars Group shareholders will have the remainder.
Peter Jackson, Chief Executive Officer at Flutter, commented that the deal will give them a much bigger platform to operate from.
Jackson went on to say that when you are very small in a market you do not have anything that differentiates you and you become a bit of a commodity layer.
The merger will most likely be a long process as it will be subject to shareholder and regulatory approval.
