The US$4.2m deal will take Flutter’s stake in the brand to 95 per cent.
US.- Flutter Entertainment, the Dublin-headquartered owner of Paddy Power and PokerStars, has reached a conditional agreement with Fastball to secure an additional 37.2 per cent stake in its FanDuel.
The US$4.2m acquisition will be paid through a combination of US$2.09bn in cash and the issue of around 11.7m new Flutter ordinary shares valued at $178.46 each.
Flutter currently holds a 57.8 per cent stake in FanDuel which it acquired in 2018. The new deal will take its stake to 95 per cent, giving it almost complete control of the and increasing its exposure in the US market.
The company plans to then give media giant Fox Sports an option to buy 18.5 per cent of FanDuel for a fair market value in 2021.
Flutter’s Chief Executive, Peter Jackson, commented in a statement: “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.”
In September, Flutter appointed Tom Watson, a former deputy leader of the Labour Party and a vocal campaigner for change in the gaming industry, as an advisor in order to promote responsible gambling.