Flutter shareholders will own 54.6% of the merged company, which would become which is set to become the world’s largest gambling operator.
According to a joint statement by Flutter and TSG, the new company will be the world’s largest online betting and gaming operator. Together, the two companies currently have 13 million active customers. In 2018, they would have recorded a combined annual revenue of £3.8bn, calculated on a proforma basis.
Under the agreement, Flutter shareholders will own 54.6% of the new company; TSG shareholders will own 45.4%. A new 14-person board will be made up of members of the two companies. Flutter CEO Peter Jackson will become CEO of the combined group, which will be headquartered in Ireland.
Jackson commented: “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.”
“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,” Jackson added.
It’s expected that the approval of Flutter and TSG shareholders will be sought in the second quarter of 2020. The two companies aim to complete the merger during the second or third quarter of the year.