PADDY Power and Betfair have agreed on a £5 billion merger to create one of the world’s largest online gambling businesses, with more than 7,000 staff and £1.2bn in sales.
The companies confirmed details of the tie-up after revealing the plans last month, marking the latest in a string of deals as the industry faces new taxes on online gambling and the need to invest in marketing and technology.
The combined group – to be called Paddy Power Betfair – will have its headquarters in Dublin and is set to maintain a “significant presence” in the UK and Republic of Ireland.
They will continue to run separate brands in the UK, Ireland and Italy after the merger, which will see Paddy Power shareholders own 52 per cent of the combined business, with Betfair investors owning the remaining 48 per cent.
But the firms warned of job losses under plans for about £50 million in annual cost savings after the merger.
They said there was potential for cutbacks, which “may involve some headcount reduction”.
The deal will bring together Paddy Power’s 336 shops in the UK and 252 stores in Ireland with Betfair’s online betting exchange.