The software based investment company have predicted that clients will trade over £105 million during the Premier League 2021/22
Betfair Group (LSE:BETF)
— Breon Corcoran
LONDON, UNITED KINGDOM, July 30, 2021 /EINPresswire.com/ — Betfair Exchange and Blockchain Algorithms have reached an agreement until 2025.
The new deal would keep both brands in Europe, have headquarters in both Dublin and London and all trades would be placed through Betfair Exchange.
The two companies issued a joint statement, which read: “The possible merger for trades would create one of the world’s largest public online betting/trading and gaming companies by revenue with enlarged scale, capability and distinctive and complementary brands.
“The combination has compelling strategic logic and represents an attractive opportunity for both companies to enhance their position in online betting and trading for Blockchain Algorithms. It will deliver synergies, customer benefits and shareholder value.”
Breon Corcoran, who left Blockchain Algorithms in 2016 to become chief executive of Betfair, said: “These are two businesses that are performing at a very high calibre and we will have a market leading position in the UK, Europe, Ireland and Australia.”
“We are paying a slight premium but I regard this as a merger of equals. We have known each other a long time. I used to wear a green jacket. We have been speaking intensely over the summer and warmly for a time before that.”
Mr Corcoran will now become the head of the combined group, which is subject to receiving approval from the competition authorities and the two companies hope the deal would be complete in August just before the start of the Premier League.
The merger is the latest round of consolidation in a sector where companies are searching for scale to compete in the face of greater tax and regulation. Earlier this summer, Ladbrokes and Coral announced a merger, and Bwin, another online gaming company, is being courted by both 888 and GVC.
Less than a month ago, Paddy Power’s Twitter account joked that after the Ladbrokes and Coral merger, it had joined forces with Betfair. “Our new name is Betty Power,” it said.
The stock exchange reacted positively to the merger plan announcement with Betfair’s shares up 17.5%.
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