The Draft business, which operates at www.playdraft.com, will continue to be led by CEOs Jeremy Levine and Jordan Fliegel. In addition to the initial US$ 19 million, further cash consideration of up to US$ 29 million may be payable over the next four years depending on business performance.
Paddy Power Betfair chief executive Breon Corcoran said: "We
are excited to be bringing Draft into the group and to further increase our
presence in the US. Draft has a differentiated product and we believe the
business, with the support of our marketing and technology expertise, can take
share in the fast-growing daily fantasy sports market.”
Commenting in the move, Jonathan Buxton, partner and head of consumer and
retail at Cavendish Corporate Finance, said: "This deal is Paddy Power’s first
venture into the US DFS market. The firm is going ahead with the acquisition,
despite the fact that it may lead to a three per cent drop in earnings in the
immediate future - this reflects the group’s confidence in the potential of
this market.”
