Flutter Entertainment Plc · NYSE:FLUT
Flutter Entertainment — Paddy Power Betfair — Merger or Acquisition (May 2018)
7 slides from Flutter Entertainment's merger presentation, May 23, 2018
Slide 1: Combination of US Business with FanDuel
Paddy Power Betfair plc Combination of US Business with FanDuel 23 May 2018
Slide 2: Summary
2 Summary Combination of Paddy Power Betfair’s US businesses (“Betfair US”) with FanDuel Transaction Paddy Power Betfair will hold 61% of the combined business and have operational control Existing FanDuel investors will hold 39% Paddy Power Betfair cash contribution of $158m on completion
Slide 3: Transaction details
3 Transaction details Paddy Power Betfair contributes its existing US assets + $158m cash Cash contribution will pay down existing FanDuel debt ($76m) and fund working capital Key terms Call / put option to take Paddy Power Betfair ownership to 80% after 3 years and 100% after 5 years Transa
Slide 4: FanDuel: leading DFS brand with substantial customer base
4 FanDuel: leading DFS brand with substantial customer base Market size1 Market share1 Regulatory profile >$3bn entry fees Legal clarity for DFS in 21 DFS >$300m revenues states2, with further market >40% legislative momentum profile >3m active players expected in 2018 (from c.59m season lon
Slide 5: FanDuel: great brand to target US sports betting opportunity
5 FanDuel: great brand to target US sports betting opportunity % of FanDuel customers % of FanDuel % of FanDuel customers who bet on sports1 entries via mobile aged 18-39 Attractive customer attributes c.84% c.70% c.65% High brand awareness2 With unique advantages Ability to attract & acquire cust
Slide 6: Transaction creates the industry's leading US online business
6 Transaction creates the industry’s leading US online business US Online net revenues1 Extensive nationwide footprint $265m c.$155m $141m c.$132m $124m c.$42m c.8m registered customers c.$9m Betfair Real-money customers in 45 states DraftKings Betfair US TwinSpires FanDuel William Hill Other US
Slide 7: Strong position to target prospective sports betting opportunity
7 Strong position to target prospective sports betting opportunity Market access Operational capabilities Strong existing relationships with key US digital marketing expertise / partnerships stakeholders across the USA Risk & trading expertise Scale makes us an attractive partner Establish
Paddy Power Betfair — Merger or Acquisition (May 2018) on 6ix