Paddy Power Betfair aims for £50 million in synergy savings

paddybetHaving announced yesterday, that governances had agreed on terms and conditions for their planned £5 billion merger. Paddy Power and Betfair executive teams have detailed further insight with regards to merger plans and long term integrations of the operators.

Central to its long term growth, will be the estimated annual cost saving of £50 million through shared synergies which the company expects to be in-place within three years of the merger completion.

At present the combined workforces of Paddy Power and Betfair total 7000 employees worldwide. Paddy Power which operates both retail and online betting divisions, has its headquarters in Dublin, which are supported by regional commercial offices in London, Rome and Melbourne. The operator also runs a strategic development branch in Sofia Bulgaria.

Betfair runs its operations primarily from its HQ in Hammersmith London combined with UK operational hubs (Halifax, Stevenage). The company has operational centres in Malta, Gibraltar and Dublin. In April the operator announced that it had opened new technical development offices in the Romanian city of Cluj.

Since the agreement of its merger in principal (date 26 August), Betfair and Paddy Power advisors have been researching synergy strategies to with a view to highlight savings and avoid the duplication of business services and assets.

Both governances have stated that the merger “will rationalise certain operational and support functions”, with jobs cuts across multiple business divisions appearing highly likely as Paddy Power Betfair looks to hit its target.

Once merged, the company will have combined revenues of €1.7 bilion, with 80% expected to be generated from its digital products.

The combined business will operate in over 100 countries, including the UK, Ireland, Australia, Italy, Canada, Denmark and the US. Of its combined revenues, 94% will be derived from regulated markets

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