Paddy Power Betfair is buying FanDuel

Update: PPB and FanDuel made it official shortly after market close in Ireland.

Deal terms:

• PPB will merge its U.S. assets with FanDuel, and also contribute $158 million in cash. Those U.S. assets include fantasy sports site Draft, which PPB bought last year for $48 million.
• PPB shareholders will hold 61% of the combined company, while FanDuel shareholders will hold the remaining 39%. But there also are options whereby PPB can increase its ownership to 80% after three years and to 100% after five years.
• All existing FanDuel shareholders are rolling their shares into the new entity.

FanDuel had raised $435 million in venture capital funding from firms like KKR, NBC Sports, Shamrock Capital Group, Comcast Ventures and the NBA.

It had been valued at $1.2 billion, per terms of a planned 2017 merger with DraftKings that was later killed by U.S. antitrust regulators.