Flutter Entertainment Makes Purchase Agreement with The Stars Group

Bookmaking holding company from Ireland, Flutter Entertainment, has publicly confirmed to have reached a purchase agreement with The Stars Group, an Ontario-based gaming and online gambling company traded on Nasdaq.

The Boards of both betting operators agreed on the of a “recommended all-share combination” which will bring the two entities together and form the Combined Group. As a result, global leaders in sports betting and gaming will merge diverse portfolios containing leading software solutions as well as top-of-the-class products and make them available in a broader geographical span.

After the merger of Flutter Entertainment and FanDuel, Sky Betting & Gaming, Full Tilt Poker and more.

It is estimated that the merged entity would have generated a $4.66 billion annual revenue in 2018 alone, making it the biggest gaming operator in the world.

Accelerated Growth Across International Markets

The Combined Group has set up a four-pillar growth strategy whose key will allow shareholders to receive new Flutter Shares in exchange for each TSG Share at approximately $110.50 USD. Following the completion of the Combination, Flutter will hold 54.64% of the new company, while The Stars Group will take a 45.36 per cent stake.

The Group will also be incorporated and headquartered in Dublin, Ireland with a listing on the London Stock Exchange. Other key points will include maximum revenue growth in the UK, Ireland and Australia, boosted presence in Spain, Italy and as well as a push on the US market through media, brands and new product offerings.

According to the report, newly merged firm will be worth around $13,5 billion USD in market capital, making it the largest global betting brand. Current CEO at Flutter, Peter Jackson will be appointed as the new organization’s chief executive, while Rafi Ashkenazi, TSG’s CEO will become COO at the Combined Group.

“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. We are committed to these two high quality brands to drive the growth of the Combined Group in the US.”

“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,” commented Peter about the historic purchase agreement.

In addition, Fox Bet (a subsidiary of The Stars Group) has earned the right to acquire 18.5 percent of FanDuel as part of the deal, while Boyd Gaming and Fastball can expect a rise of 12.5 percent in market value as well.

Source:

“Proposed combination with The Stars Group”, flutter.com, October 2, 2019.