Flutter Entertainment To Complete the Acquisition Of TSG On May 5
Posted on May 5, 2020 | 7:22 am
Flutter-Stars mega-merger comes to its epilogue with May 5 set as the date when Flutter Entertainment is intended to complete the acquisition of The Stars Group.
This was preceded by receiving approval from both Flutter and TSG shareholders, as well as numerous antitrust authorities in a number of jurisdictions across the world. The pretty long roster of “go-aheads“ includes those from London Stock Exchange, Euronext Dublin, and respective gaming control bodies in the UK, Ireland, Australia, the USA, and Canada.
The Strength Of Combined Portfolio
According to the deal, Flutter stakeholders will own around 54.64% of the world’s largest online gaming Group while TSG investors will control the remaining 45.36%. The company is going to keep the federal operating model, which has been successfully used since January 2018, letting each team take advantage of autonomy in reacting to developments in its local market, at the same time giving them access to the Group’s substantial resources.
It’s decided that Flutter will initially have five reporting segments with the TSG operations divided into US and non-US:
TSG International, excluding current US operations
PPB including Paddy Power online, Betfair, Adjarabet, Paddy Power retail and B2B operations
Sky Betting and Gaming
Australia, including Sportsbet and BetEasy
US, including FanDuel Group and all TSG US operations
Peter Jackson, Group Chief Executive, said:
“I am delighted to confirm that our transformational combination with The Stars Group will complete on 5 May. The enlarged Group brings together exceptional brands, products and businesses, a hugely talented and experienced team, and a diverse global presence. The strength of our combined portfolio of assets means that we approach the future with confidence in these uncertain times.“
The Group, however, plans to make some changes to its organizational structure and switch to 4-divisional management in two steps: firstly to merge the current TSG International operations with PPB and then to move Paddy Power into a new UK & Ireland division along with Sky Betting and Gaming.
Peter Jackson stressed the company’s commitment to responsible gambling both online and offline pointing out that Flutter and TSG “have a strong legacy of leadership“ in this field. Speaking of the new role of Rafi Ashkenazi as a consultant to Flutter, he said:
“As we approach a new era for the enlarged Flutter organisation, I wish to take this opportunity to acknowledge the huge contribution of Rafi Ashkenazi in creating the exceptional business that The Stars Group is today.
He has been instrumental in transforming TSG from a single product operator to a diverse global leader with multiple product offerings. I know that his experience and expertise will bring valuable perspective to our Board as we bring our two businesses together.”