Marketing

Flutter to buy out US business in €3.4bn deal


Paddy Power owner Flutter Entertainment plans to take full control of its US business Fanduel in a €3.4 billion deal.

Flutter owns 57.8 per cent of Fanduel, which the Irish gambling giant has been using to grow in the newly opened US market.

The Dublin-headquartered group said on Thursday that it will boost its stake to 95 per cent by buying Fanduel’s minority shareholder Fastball Holdings’ shares for $4.175 billion (€3.44 billion).

Boyd Casinos, Flutter’s partner in the US, will continue to hold the remaining 5 per cent in Fanduel.

Deal

The Irish group intends to pay for the deal through $2.09 billion cash and by issuing 11.7 million new shares directly to Fastball.

Flutter will fund the cash element from its own resources and by placing new shares to raise around €1.22 billion.

The company, owner of Paddy Power, Betfair, Australia’s Sportsbet and various betting businesses in Europe, the US and elsewhere, published details of the proposed placing on Wednesday. The transactions will require shareholders’ backing.



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