Flutter has announced the widely touted €2.3bn acquisition of gaming operator Snaitech from Playtech, which will be combined with Flutter’s existing Italian-facing business.
Once the deal completes in Q2 next year, Flutter will have approximately 30 per cent market share in Italy across operations including Sisal, which it acquired in 2021, Betfair’s Italian-facing operations and now Snaitech.
Flutter said the acquisition will offer omnichannel operators an opportunity to maximise growth, amid local advertising restrictions and the prevalence of online deposits and withdrawals via retail outlets.
“Snai's strong retail presence facilitates high brand awareness of 74 per cent, the third most recognised brand in a market with restricted advertising,” the company said. “This complements Sisal, as the most recognised brand, and we will continue to run a multi-brand strategy in the market.
“Snai's customers who utilise both online and retail channels are more loyal, more active and generate more revenue per player than online only players.”
Greater digital adoption is expected to drive online market growth at a compound rate of approximately 10 per cent over the next three years.
The transaction is expected to deliver operating cost synergies of at least €70m along with incremental revenue synergies.
“This transaction is compelling strategically and financially,” said Flutter CEO Peter Jackson. “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 maximise the growth opportunity for our combined businesses."
Both parties confirmed in August that they were in discussions regarding a deal for Snaitech, before reports on Monday claimed that Flutter was on the verge of announcing the move.
Playtech CEO Mor Weizer said that the sale of Snaitech represented a “compelling opportunity” to maximise value for shareholders, “while also allowing them to share in further upside from continued ownership of a leading B2B business.”
“The combination of the Playtech Group's leading technology with its exposure to attractive markets, including in the Americas and Europe, provides a strong platform for growth in the medium-term,” he added.
“We are excited about what the future holds and the many opportunities ahead of us.”
Playtech will also use €350m of the Snaitech funds to pay back the amount outstanding on its bond due in March 2026, after which the group “will have a strong financial footing from which to execute an accelerated growth plan.”
Last week, Flutter announced its expansion in the soon-to-be-regulated Brazilian online gaming market, via a US$350m investment in NSX Group, the owner of operator Betnacional.
