Paddy Power Betfair has agreed to merge its U.S. business with fantasy sports company FanDuel to target the newly opened U.S. sports-betting market, the UK- and Ireland-based bookmaker said on Wednesday.
Under the agreement, Paddy Power Betfair will contribute its existing U.S. assets along with $158m of cash to take a 61 percent stake in the combined business, with existing FanDuel investors owning 39 percent. The cash will allow FanDuel to pay down its existing debt of $76m.
Paddy Power Betfair can increase its ownership to 80 percent after three years and 100 percent after five years consisting of call and put options at the prevailing market valuations, the company added.
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