Paddy Power Betfair completes acquisition of FanDuelĭrag-along clauses are designed to protect majority shareholders by enabling them to force minority shareholders to participate in a sale.Īccording to reports, KKR, based in New York, and Shamrock, based in Los Angeles, have told FanDuel's founders – who each hold ordinary shares – that there will not be enough cash generated from the transaction for them to be paid.įounded in Edinburgh in 2009, FanDuel is a web-based fantasy sports site with around 6m registered users.The firm's other co-founders include former head of technology Chris Stafford and former head of design Rob Jones. The move would mean none of the firm's founders or employees, including husband and wife co-founders Nigel and Lesley Eccles, would receive payment in the deal.

Two US private equity houses - Shamrock Capital Advisers and Kohlberg Kravis Roberts - are alleged to have excluded ordinary shareholders from the deal by exercising their majority shareholder rights under a so-called 'drag-along' clause. The combined business will have a presence across 45 states, eight million customers and US$265 million in annual revenue, making it a leader across daily fantasy sports, horseracing wagering, and gaming ahead of the opening up of US sports betting.The founders and employees of Scottish 'unicorn' FanDuel will not share in the proceeds of the firm's $465m sale to Paddy Power Betfair, according to reports. “This is a pivotal time for the sports world in general, and we are poised to build upon our individual successes and join forces to build the best fan experience in the sports industry,” he added. King said that the new company “embodies the strengths of TVG, Betfair US and FanDuel and brings together the brilliant talent, technological expertise, and shared resources to capture the US market opportunity in front of us.” Paul Rushton, currently Commercial Finance Director of Paddy Power Betfair, will become the CFO of FanDuel Group.

FanDuel CEO Matt King will serve as CEO of FanDuel Group and Betfair US CEO Kip Levin will become President and COO, and remain in his role as CEO of TVG where he will oversee the horseracing and television businesses. The merger creates the largest online sports operator in the United States, with a range of products and experiences for all sports fans. US.- Paddy Power Betfair and FanDuel confirmed on Wednesday that they have completed their previously-announced merger, combining Paddy Power Betfair’s US businesses with FanDuel. The companies agreed to create a new operator for the US market, to be called FanDuel Group.

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