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Bids, Mergers and Takeovers

Paddy Power Betfair acquires US-based DRAFT

10 May 2017 07:14

Paddy Power Betfair has entered into the daily fantasy sports market in the United States with the acquisition of an early-stage operator, DRAFT.

The initial cash consideration paid on completion was $19m. Further cash consideration of up to $29m would become payable over the next four years depending on the business' performance.

DRAFT was mobile-led, with a differentiated product.

This acquisition provided Paddy Power Betfair with exposure to a fast-growing market (c.90% CAGR between 2014 and 2016 to over $300m revenues) and complements our other businesses in the US.

To maximise the growth opportunity, substantial marketing investment in the business is envisaged in the next few years, with an EBITDA loss of about $20m forecast in 2017.

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Related Company: PPB

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