Flutter Entertainment to merge with Stars Group
Published on by Becky M.
Flutter Entertainment which was previously known as Paddy Power Betfair are set to purchase the Stars Group who own Sky Bet, which will incorporate an all-share deal with both sets of shareholders.The deal is said to be worth around £9.5 billion which will make them the largest operator of online gambling and betting. Flutter shareholders would own approximately 54.64% of the new group with Star Group shareholders owning 45.36%.
Peter Jackson, Chief Executive of Flutter entertainment will keep the same role in the new group, and Rafi Ashkenazi, Chief Executive of the Star Group will have the role of Chief Operating Officer in the new group.Gary McGann, Chair of Flutter, said: “This is an exciting and transformational combination that will bring together two strong, complementary businesses to create a global leader in the fast-growing online sports betting and gaming industry. Under Peter Jackson’s leadership we will bring together a management team with the experience required to ensure a successful integration of the businesses, with minimal disruption, during a time of unprecedented change in the sector. The Combined Group will be a strong voice in the promotion of responsible gaming worldwide and will lead industry standards on the protection of customers, whilst building sustainable relationships with them.”Dave Gadhia, Executive Chairman of TSG, commented: “The Board of TSG and I are delighted to recommend this exciting combination of TSG and Flutter, which we believe will create significant value for TSG’s shareholders. 4 Over the past four years our team, led by Rafi, has been working relentlessly and passionately to stabilise, grow and establish TSG as one of the clear leaders in our industry.“We seized new opportunities in poker, significantly grew our casino business, acquired one of the UK’s most notable sportsbook brands in Sky Bet, built a significant presence in Australia through BetEasy, and teamed up with FOX Sports to launch FOX Bet to position ourselves to become a leader in the U.S. We have long had respect for Flutter, and believe the combination is a natural next step in the evolution of the business, creating a leader in online betting and gaming with trusted brands, diversified revenues, stand-out technology and the best operational and managerial talent in the industry.“With TSG appointing a significant portion of the new Board, we look forward to working together with Gary, Peter and the Flutter team to continue and contribute to the success of our combined business.”