Shares in the owner of Paddy Power and Betfair, Flutter, have jumped nearly seven per cent this afternoon on news it will buy a 37.5 per cent stake in FanDuel for $4.18bn.
Around $2.1bn of that will be in cash to Fastball with the remainder received in Flutter shares.
London-listed Flutter also said it will raise £1.1bn in equity to partly fund the deal, with the rest of it funded through debt.
Peter Jackson, Flutter’s chief exec, said of the proposed deal:
“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.
Shares in Flutter are trading 8.2 per cent higher at 14,370p per share.