Flutter Entertainment Acquires Snaitech in €2.3 Billion Deal
Published: September 17, 2024 | Author: Ron Clarke
Flutter Entertainment, the leading corporation behind prominent sports betting and iGaming brands such as Paddy Power, Betfair and PokerStars, has confirmed its acquisition of Snaitech, one of Italy’s top gaming operators, in a deal valued at €2.3 billion. The transaction, announced today, solidifies Flutter’s strategy to enhance its leadership in international regulated markets, with the acquisition expected to close by Q2 2025.
The acquisition will see Flutter further strengthen its position in Italy’s highly competitive gambling market, where Snaitech currently holds a 9.9% share of the online market and a strong retail presence with over 2,000 physical sites. Snaitech has experienced robust growth, with online revenue and adjusted EBITDA rising by 26% and 32% respectively over the last four years.
On August 14, we reported that negotiations between Playtech, Snaitech’s parent company, and Flutter had reached advanced stages. With today’s confirmation, Flutter will not only assume ownership of Snaitech but will also combine its Italian business portfolio, including Sisal, to capture an estimated 30% market share in the country’s online sector. Sisal, already a strong player in Italy, saw a 27% increase in average monthly players and revenue between Q2 2022 and Q2 2024.
This acquisition is expected to deliver substantial cost and revenue synergies. Flutter estimates cost synergies of at least €70 million, alongside additional revenue synergies driven by the integration of its proprietary technology, content, and risk management systems. These synergies are projected to be realized within three years post-acquisition.
Peter Jackson, Flutter’s CEO, expressed enthusiasm for the acquisition, noting the strategic and financial advantages of the deal. He highlighted that the integration of Flutter’s products and capabilities, combined with Snaitech’s established retail network, will position Flutter as a market leader in Italy, Europe’s largest regulated gambling market.
The deal is subject to regulatory approvals and merger clearance.
This acquisition comes shortly after Flutter’s recent purchase of a 56% stake in NSX Group, the owner of the Betnacional brand in Brazil, which was announced just days ago. This move further highlights Flutter’s broader strategy of securing leadership positions in key international markets, demonstrating its commitment to expansion across regulated markets worldwide.
At Casin.com, we will continue monitoring the developments in the global gaming market and keep you updated on the most interesting and important news.
