Flutter Entertainment to Swing Italy’s Snaitech from Playtech in €2.3 Billion Deal

Online sports betting and iGaming giant Flutter Entertainment plc disclosed its agreement with Playtech to acquire its subsidiary, Snaitech S.p.A. The transaction will cost €2.3 billion ($2.6 billion), which will see Flutter add one of Italy’s premier omnichannel operators to its rapidly expanding portfolio. The deal costs nearly as much as Playtech’s entire market value ($3 billion); it only procured Snaitech for €846 million in 2018.

The deal reinforces Flutter’s tactical strategy to strengthen its holding across international markets. Snaitech’s acquisition is lined up to conclude by Q2 of 2025 and is expected to boost the iGaming company’s earnings per share. The transaction is already reflecting positively, considering Flutter’s shares were trading marginally higher premarket today.

Incredible Market Performance

Snaitech currently commands an impressive 9.9% market share, ranking as Italy’s third-largest online operator. The company has recorded notable growth in the past four years, with online revenue rising at a compound rate of 26%. Its Adjusted EBITDA is also commendable, increasing at 32% compound rates.

Snaitech’s fast rise in Italy’s gaming market is propelled by its strong retail presence in over 2,000 gaming sites. With an average of 291,000 monthly players, the company’s position as a trailblazer within the retail niche is undeniable.

Flutter Edge

Flutter anticipates the acquisition will boost its market share immediately after completion. The sports betting company expects a strong spot in Italy’s online market share of roughly 30%. It intends to integrate its new addition with its existing business in the country, including Sisal, which has recorded revenue growth in Q2 of 2022 and 2024.

The integration is predicted to generate over €70 million in cost synergies and additional revenue through Flutter Edge. This framework is expected to be fulfilled within three years after completion, with 10% in the first year and 50% in the second.

On the other hand, Playtech announced it would distribute up to €1.8 billion to shareholders and focus on operating as a B2B software provider to other gambling companies.

Mor Weizer, Playtech’s CEO, explained, “While Snaitech has been an important part of the Playtech Group’s growth in recent years, the board agreed that this transaction represents a compelling opportunity to maximize value for our shareholders while also allowing them to share in further upside from continued ownership of a leading B2B business.”

Global Domination

Flutter Entertainment has been in an aggressive pursuit of a global expansion strategy. The Snaitech acquisition comes just days after the company announced it would buy a 56% stake in Brazil’s NSX Group for about $350 million. It has also acquired businesses in Canada, Georgia, and India.