Flutter set to acquire Snai from Playtech after receiving all necessary regulatory approvals, solidifying its position in the Italian gambling market.
Key Takeaways:
- Flutter to purchase Snai for €2.3bn in cash
- Acquisition aligns with Flutter’s strategy for international market leadership
- Deal expected to complete by end of April, with update in Q1 results
Flutter Expands Italian Footprint
Flutter, a major player in the online gambling sector, has cleared all regulatory hurdles to acquire Snai from Playtech. The €2.3bn cash deal, announced in September 2024, will see Flutter take control of Italy’s third-largest online and retail gaming operator.
The acquisition is set to strengthen Flutter’s position in Europe’s largest regulated market. As stated by the company, ‘Adding Snai to the Flutter portfolio will consolidate Flutter’s leadership position in Italy and create a position of increased scale to capitalise on the growth opportunity in Europe’s largest regulated market.’
Strategic Move in Competitive Market
Snai has shown impressive growth in recent years, with compound online revenue and adjusted EBITDA growth of 26% and 32% respectively over the four years leading to 2023. This performance makes it one of the fastest-growing omni-channel operators in the Italian market.
Flutter CEO Peter Jackson commented on the deal: ‘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.’
Impact on Playtech
For Playtech, the sale of Snai marks a significant step in its transformation into a predominantly B2B supplier. Following the deal’s completion, Playtech plans to distribute between €1.7bn and €1.8bn to shareholders as a special dividend.
Timeline and Next Steps
Flutter anticipates the deal will be finalized by the end of April. The company has announced it will provide further details as part of its Q1 results, scheduled for release on 7 May 2025.
This acquisition represents a notable shift in the European online gambling landscape, potentially influencing market dynamics and competition in the Italian sector. As the deal progresses, industry observers will be keen to see how Flutter leverages Snai’s established presence to enhance its product offerings and market share in Italy.
