Paddy Power and Betfair agree to merge and create one of world's largest online betting firms

Industries Associated Press

Paddy Power and Betfair have agreed to merge, creating one of the world's largest online betting and gaming companies by revenue.

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The companies say Paddy Power shareholders would own 52 percent of the combined group and Betfair shareholders would own 48 percent. In addition, Paddy Power shareholders would receive a special dividend of 80 million euros ($91.7 million) once the deal is completed.

Paddy Power Chairman Gary McGann would be chairman of the combined group, with Betfair Chief Executive Breon Corcoran serving as CEO. Other terms are under discussion.

Together, the companies had revenue of more than 1.1 billion pounds in their last financial years. Ireland-based Paddy Power PLC and London-based Betfair Group PLC say the size of the combined group would help it compete in new and existing markets.