This morning, both Flutter and Playtech’s boards confirmed the acceptance of an all-cash offer for Snaitech, Italy’s third-largest online gambling operator with a 9.9% market share.
Flutter Entertainment has finalised an agreement with Playtech Plc to acquire Snaitech SPA for €2.3bn, aiming to secure the “gold medal podium position” in Italian gambling.
This morning, both Flutter and Playtech’s boards confirmed the acceptance of an all-cash offer for Snaitech, Italy’s third-largest online gambling operator with a 9.9% market share.
In August, Playtech announced that negotiations with Flutter were underway, stating that it would only consider offers above €2bn for its flagship B2C unit, leading to this successful deal.
Peter Jackson, Flutter CEO, expressed his enthusiasm for the acquisition, saying:
“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 both strategically and financially.”
The deal bolsters Flutter’s growth strategy in Italy, regarded as Europe’s fastest-growing gambling market, with an estimated Gross Gaming Revenue (“GGR”) of €21bn in 2023. Italy’s online gambling market, with only 21% penetration, offers significant growth potential, which Flutter aims to capitalize on through its tier-1 portfolio, including Betfair.it, Sisal, and now Snaitech.
As presented to investors, “Greater digital adoption is expected to drive online market growth at a compound rate of approximately 10% over the next three years. Local advertising restrictions and the prevalence of online deposits/withdrawals via retail outlets provide omni-channel operators with an opportunity to maximise growth.”
After the acquisition, Flutter International will hold a 30% market share in Italy’s online gambling market. The company plans to implement its EDGE programme to enhance Snaitech’s operations, targeting synergies and cost savings of €70m over the next three years.
Although Flutter’s leverage ratio is expected to rise temporarily post-transaction, it is projected to decline quickly due to profitable growth in Italy’s online market.