While the online gambling world is no stranger to multimillion dollar mergers, the latest deal between two powerhouses definitely made headlines. Two European companies, Betfair and Paddy Power are set to become one of the biggest companies of its kind after they join forces to become Paddy Power Betfair. The deal, said to be worth over $8 billion, will enhance the revenues of both companies which created combined annual revenues of more than $1.5 billion last year. Under the terms of the deal, Paddy Power will own 52% of the new business, while Betfair shareholders will retain the remaining 48%. Before completion of the deal, Paddy Power shareholders will receive a special, one-off dividend of €80 million. Share prices in both companies soared last week after the news broke. Paddy Power, which saw price shares climb 20% since the announcement of the merger broker, said that a total of 207 shareholders had become millionaires on paper thanks to the rise in value. Betfair is said to be worth £2.4 billion, while Paddy Power slightly more than that – based on current closing prices. The current chairman of Paddy Power, Gary McCann will become chairman of the board of the combined group, while Breon Corcoran, who serves as the CEO of Betfair – but who once headed Paddy Power before he was lured to the rival in 2011 – will be the chief executive officer of the combined group. Paddy Power’s CEO, Andy McCue will become COO of the new Paddy Power Betfair, while Betfair’s current CFO, Alex Gersch, will become CFO of the combined group. Although the group will be combined, both brands plan to retain their “distinctive and complementary” characters, according to Breon Corcoran. “We fundamentally believe this industry is all about scale,” he said. “By putting together two distinct but phenomenally strong brands, we’ll have a market leading position in the UK, Ireland, Australia and the United States.” Also adding his opinions was Paddy Power’s chief financial officer, Cormac McCarthy, who said that the combination of the two groups presented an “attractive opportunity.” “The scale and capability is unsurpassed and would leave us in a much better place to compete in our current markets,” he said, “where competition is intense.” The industry is currently in the process of seeing several online companies merge, including Ladbrokes and Coral. The battle to purchase Bwin.Party is also being played out between 888 Holdings and GVC Holdings.