Flutter Entertainment takes control of FanDuel in $1.76 billion deal
Flutter Entertainment PLC on Thursday said it is buying Boyd Gaming Corp’s 5% stake in FanDuel, giving it 100% ownership of the US gambling operator.
The New York-based bookmaker, which also owns Paddy Power, and Betfair, paid $1.76 billion for Nevada-based gaming and hospitality company Boyd’s holding, giving FanDuel an implied valuation of $31 billion.
The agreement also provides for the extension of the strategic partnership between FanDuel and Boyd at significantly reduced market access costs in the states where FanDuel’s market access is provided by Boyd.
This is expected to contribute to annual savings for Flutter of around $65 million beginning July 1.
Flutter said this further underpins confidence in the long-term profitability profile of its US business, ‘demonstrating the ability to help mitigate both recent and future tax increases’.
Flutter first acquired a controlling stake in FanDuel in 2018 and increased its ownership to 95% in a $4.1 billion deal in 2020.
The deal is expected to complete in the third quarter of 2025, and will be funded by additional debt financing. Leverage is expected to increase but then reduce given the profitable growth opportunities that exist across the group, Flutter said. The firm remains committed to its medium-term leverage ratio of 2.0 times to 2.5x.
Flutter also noted it has agreed a $1.75 billion bridge credit agreement which it plans to use in connection with the FanDuel deal.
The facility will mature 12 months after its first utilisation, with two additional six-month extension options.
Chief Executive Peter Jackson said: ‘Our acquisition of FanDuel in 2018 is one of the most transformational events in our group’s history’, adding, ‘I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%.’
Shares in Flutter Entertainment were up 0.6% at 21,440.00 pence each in London on Friday morning.
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