London-listed Paddy Power Betfair has entered into a definitive agreement to merge its Betfair US subsidiary with daily fantasy sports (DFS) giant FanDuel.
Paddy Power Betfair aims to use the FanDuel brand, daily fantasy customer base and management team to establish a leading presence in the US sports betting market.
"We are excited to add FanDuel to the group's portfolio of leading sports brands," Paddy Power Betfair chief executive Peter Jackson said Wednesday. "This combination creates the industry's largest online business in the US, with a large sports-focused customer base and an extensive nationwide footprint.
"The group has leading sports betting operating capabilities globally and strong operations on the ground in the US," Jackson continued. "Together with our substantial financial firepower, we believe we are now well placed to target the prospective US sports betting opportunity."
Paddy Power Betfair is to contribute its US assets along with USD$158m in cash to facilitate the merger.