Paddy Power Betfair acquires US daily fantasy operator DRAFT

The FTSE 100 company said DRAFT was mobile-led, had a differentiated product and a strong management team.

It said the business would continue to be run by co-CEOs Jeremy Levine and Jordan Fliegel and would now have access to the group's marketing and technology capabilities.

The acquisition was said to provide the group with exposure to a “fast-growing” market, and complemented its other businesses in the United States.

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.

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

“We are excited to be bringing DRAFT into the group and to further increase our presence in the United States,” said chief executive Breon Corcoran.

“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.”