Betting and online gambling giants Flutter Entertainment and The Stars Group have announced a merger deal. The two companies are eyeing at the newly regulated and expanding betting markets in the US.
With the merger, the new entity will be the world’s largest online gambling company. Recently, the Ireland-headquartered Flutter Entertainment rebranded itself – formerly it was Paddy Power Betfair.
The idea behind changing the name from Paddy Power to Flutter Entertainment was to make sure that the company’s brand name resonated with the company’s services. Apart from England, the company also has been benefiting from its overseas operations – the US being the prime foreign destination.
Toronto-based The Stars Group is already listed on both the Nasdaq and the Toronto Stock Exchange. The company operates the popular Pokerstars brand.
According to the deal, Flutter shareholders will own 54.64 percent of the new company, with TSG shareholders owning 45.36 percent.
In a joint statement announcing the deal, the companies said that the new entity would “be well-diversified from both a geographical and product offering perspective” and that it would help to accelerate Flutter’s four-pillar growth strategy, including maximizing growth in its core markets of the UK, Ireland, and Australia.”
The statement also said that the merger would “ideally position the combined group to pursue the US opportunity through a leading combination of brands, media reach and product offering.”