Flutter outlines post-TSG merger business reshuffle
Paddy Power and Sky Betting & Gaming to form new UK & Ireland division after multi-billion-pound merger completes next week
Flutter Entertainment’s multi-billion-pound merger with The Stars Group (TSG) will complete on 5 May following clearance from shareholders and competition regulators.
The newly merged behemoth will stick with Flutter’s prior federal operating model, initially with five separate reporting businesses.
These include the TSG international division, Paddy Power Betfair, Sky Betting & Gaming (SBG), its Australia-facing brands and a new US division made up of TSG US operations and FanDuel Group.
The combined group will report its full year 2020 earnings on this basis.
Paddy Power Betfair will then merge with TSG’s international division before the combined Flutter Entertainment business moves to a four-division operating model, as Paddy Power and SBG move alongside each other to form a new UK and Ireland division.
“Each of these organisational changes will be managed with the primary objective of maintaining momentum within each business as the group looks to achieve the potential revenue and cost benefits of integration,” said Flutter Entertainment in a note to investors.
Flutter CEO Peter Jackson paid tribute to outgoing TSG CEO Rafi Ashkenazi, who will move into a consultancy-based role post-merger advising the combined group on strategy and integration.
“He has been instrumental in transforming TSG from a single product operator to a diverse global leader with multiple product offerings,” said Jackson. “I know that his experience and expertise will bring valuable perspective to our board as we bring our two businesses together,” he added.
Hailing a “new era” for the combined group, Jackson said the business would be free to approach the future with confidence in what he called uncertain times following Covid-19.
Flutter Entertainment’s share price rose by 7% in early trading.