Flutter Expands in Italy with Acquisition of Snaitech
Flutter has announced the acquisition of Snaitech, one of Italy’s top gaming companies, in an all-cash deal. The move is part of Flutter’s strategy to strengthen its leadership position in international markets. Snaitech, known for its Snai brand, currently holds a 9.9% share of the Italian gaming market and boasts an average of 291,000 monthly players.
A Strategic Move for Flutter
Peter Jackson, Flutter CEO, expressed his excitement about the acquisition, stating, “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 strategically and financially.”
Jackson emphasized that the deal aligns with Flutter’s mergers and acquisitions strategy, creating a significant opportunity to boost Snai’s growth through Flutter’s market-leading products and capabilities, both in the U.S. and globally.
The deal, expected to close in Q2 2025, is projected to be immediately accretive to Flutter’s earnings per share. Snaitech’s revenue has grown consistently, with a compound growth rate of 26% in online revenue and 32% in Adjusted EBITDA over the four fiscal years to 2023. In FY2023, Snaitech generated €947 million in revenue, with 50% coming from its online operations.
Consolidating Flutter’s Position in the Italian Market
Following the completion of the deal, Flutter will take the top spot in Italy’s gaming market, with a combined 30% share of the online gaming sector. This larger market share is expected to bring efficiency benefits to the Flutter group, including operating cost synergies of at least €70 million, along with incremental revenue synergies.
Flutter highlighted Snaitech’s strong retail presence, with over 2,000 physical sites that have supported its second-place position in both betting and gaming.
The acquisition follows Flutter’s 56% investment in the Brazilian-facing NSX Group and mirrors its earlier acquisition of the Sisal brand in December 2021, which was valued at €1.91 billion.
Playtech’s Perspective on the Deal
Playtech, the former owner of Snaitech, also commented on the transaction. CEO Mor Weizer acknowledged the success of Snaitech under Playtech’s ownership, noting its growth into a high-quality business with a leading position in the Italian market.
Weizer explained that the deal allows Playtech to maximize value for shareholders while maintaining focus on its B2B operations.
After the transaction, Playtech plans to return between €1.7 billion and €1.8 billion to shareholders in the form of a special dividend, with the exact amount contingent on the capital needs of the ongoing Playtech business.
Playtech executives will also receive €100 million in bonuses, with €34 million set aside for the Snaitech executive team.
A New Chapter for Playtech and Flutter
Playtech initially acquired Snaitech in 2018 for an enterprise value of €846 million. Now, with the sale to Flutter, Playtech will refocus on its technology-driven B2B offerings, aiming for accelerated growth in key markets, particularly in the Americas and Europe.
Meanwhile, Flutter is poised to strengthen its leadership in Italy’s gaming sector, leveraging Snaitech’s market presence to drive further growth and profitability.