FanDuel, the fantasy sports site that allows users to win real money, has been acquired by UK and Ireland-based Paddy Power Betfair. The terms of the transaction were not disclosed but publicly-traded Paddy Power Betfair will be merging its US operations with FanDuel, injecting some cash to service FanDuel’s existing debt load, and will have operational control with the option to wholly own the company after five years. “FanDuel and Betfair US share an enthusiasm for innovation and, as a result of today’s announcement, are prepared to lead the charge into the US sports betting market,” said Matt King, CEO, FanDuel. “The combination of our brands and team, along with a shared culture and vision for the future, will allow us to create the leading gaming destination for sports fans everywhere.”
Founded by Lesley Eccles and Tom Griffiths in 2009, FanDuel had raised a total of $416.2M in funding over seven rounds rounds. FanDuel reported revenue just north of $124M for 2017 with 1.3 active users. Investors in FanDuel include Comcast Ventures, Fabrice Grinda, VTF Capital, Scottish Investment Bank, KKR & Co. (Kohlberg Kravis Roberts & Co.), Simon Murdoch, Time Warner Investments, Bullpen Capital, Piton Capital, Jose Marin, Pentech Ventures, CapitalG, CapitalG, blisce/, Walking Ventures, BluePointe Ventures, HDS Capital, Karlani Capital, Tusk Ventures, Shamrock Capital Advisors, ECA Ventures, and NBC Sports Ventures.
“We are excited to add FanDuel to the Group’s portfolio of leading sports brands. This combination creates the industry’s largest online business in the US, with a large sports-focused customer base and an extensive nationwide footprint,” remarked Peter Jackson, Chief Executive, Paddy Power Betfair.