Flutter Entertainment has agreed to acquire Italy-facing operator Snaitech from Playtech in a deal valued at €2.3 billion ($2.6 billion).
The deal was signed on Tuesday (September 17) after rumors had been circulating for months about the potential acquisition. It was on Monday that the deal was suggested to be close to being completed.
The price of the transaction almost reached Playtech’s entire market value of $3 billion which was its closing price in London on Monday, just a day before the deal was publicly announced. It was in 2018 when the company had acquired Snaitech for $846 million.
Flutter Entertainment is an Irish sports betting and gambling company, with headquarters in Dublin. It is also the parent company of major international brands and operations including FanDuel, Sky Betting & Gaming, Sportsbet, Sisal, PokerStars, Paddy Power, Betfair, Adjarabet, TVG, and Junglee Games.
Following the deal, Flutter’s presence in Italy is expected to grow with the addition giving the gambling giant a roughly 30% share of the market.
In 2023, Snai had a 9.9% share of the Italian market and was the number three online operator in the area.
In a press release by Flutter Entertainment, three reasons are provided for how the transaction is expected to create shareholder value.
This includes delivering “an enhanced competitive position in a fast growing, regulated market,” enhancing the “‘local hero’ brand portfolio,” and presenting a “compelling opportunity to drive both cost and revenue synergies through access to the Flutter Edge, and deliver meaningful value creation.”
Flutter and Playtech deal could be completed by Q2 of 2025
The transaction is subject to merger control clearance and other customary regulatory clearances, but it’s expected to close by Q2 of 2025.
Peter Jackson, CEO of Flutter, said: “I am delighted to announce the acquisition of Snai, one of the leading players in Italy, Europe’s largest regulated market.
“This transaction is compelling strategically and financially. It fits perfectly within our strategy for value creating M&A and creates a significant opportunity to accelerate Snai’s growth by providing them with access to Flutter’s market leading products and capabilities both in the US and globally.
“I look forward to welcoming the Snai team to the Flutter Group and working with them to maximize the growth opportunity for our combined businesses.”
Featured Image: Via Ideogram
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