Paddy Power and Betfair owner Flutter Entertainment has agreed a deal to buy Canadian rival The Stars Group to create the world's largest online betting firm with combined annual revenues of £3.8 billion.
Flutter - previously called Paddy Power Betfair - said the merged group will be headquartered in Dublin and listed on the London Stock Exchange as well as on Euronext Dublin.
The statement released this morning reads: "The Boards of Flutter Entertainment plc (“Flutter”) (LSE: FLTR) and The Stars Group Inc. (“TSG”) (Nasdaq: TSG) (TSX: TSGI) are pleased to announce that they have reached agreement on the terms of a recommended all-share combination to be implemented through an acquisition of TSG by Flutter pursuant to a plan of arrangement under the Business Corporations Act (Ontario) (the “Combination”).
"The Combination will bring together two complementary businesses (the “Combined Group”) to create a global leader in sports betting and gaming.
"The Combined Group will have a diverse portfolio of leading brands and complementary best-in-class products with a broad geographic reach. Flutter and TSG would each bring to the Combined Group a proven track record in using product and brand leadership to create low-cost customer acquisition channels, while optimising value through product cross-sell.
"It will benefit from an enhanced global platform and improved local market reach. On a proforma1 basis, the Combined Group’s annual revenue would have been £3.8bn in 2018, making it the largest online betting and gaming operator globally."
