December 3, 2020 Sports Betting, Casino, Online

Flutter to acquire 37.2% interest in FanDuel for $4.17bn

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Flutter Entertainment has announced it intends to acquire a 37.2% interest in FanDuel currently held by Fastball for a total of $4.17bn in cash and Flutter shares.

The operator has entered into a conditional agreement with Fastball which includes a $2.1bn payment in cash. Flutter will issue around 11.7 million new ordinary shares to Fastball for the remainder of the fee.

According to Flutter, the cash payment will be funded by a combination of debt and the proceeds of an equity placing launched today. The equity placing will raise around £1.1bn ($1.48bn) in total.

The acquisition will increase Flutter’s share hold in FanDuel from 57.8% to 95%. After the announcement, Flutter shares increased as much as 14% in London, to a record high.

In a company statement, Flutter provided an overview of the rationale behind the acquisition. The company described FanDuel as a “unique asset” with a customer base of more than 9.5 million within the US.

The deal will give FanDuel an estimated enterprise value of $11.2bn, according to Bloomberg.

Peter Jackson, Flutter CEO said: “Flutter's initial acquisition of a controlling stake in FanDuel in 2018 has been transformational for the shape of the Group.

“Our number one position in the crucial US market is built on many of the assets we acquired through that transaction, supported by the broader Group's capabilities.

“Our intention has always been to increase our stake in the business and I'm delighted to be able to do so earlier than originally planned and at a discount to its closest peer.”

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