Flutter completes €2.3bn acquisition of Snaitech

Flutter Entertainment has completed its €2.3bn (£2m) acquisition of Snaitech from Playtech in a move the New York-listed firm said would take its Italian market share to around 30%.

Earlier this month, the operator received the final approvals required to press ahead with the transaction, with the deal now having finally closed.

Flutter said the omnichannel operator would be positioned within its Southern Europe & Africa region of its International division.

Flutter has recently shifted its reporting breakdown into two sections, US and International, greater reflecting the importance of FanDuel to the parent company.

In Italy, where Flutter already owns Sisal, bosses said the transaction would allow it to take even greater share, as well as deliver shareholder value.

The company noted that due to Italy’s low online penetration across the market to-date and Snai’s recognisability via its retail empire were key benefits of bringing the firm in to its portfolio.

Flutter added: “Snai has a strong base of highly engaged omnichannel customers along with one of the most recognisable brands, which is expected to expand and diversify customer acquisition opportunities for Flutter in Italy.”

In terms of synergies, Flutter said it was targeting operating synergies of at least €70m, to be achieved within three years of closing at a cost of 1.25x and capex synergies at €10m.

“Revenue synergies are expected to be achieved by leveraging Flutter Edge capabilities across pricing and risk management, in-house igaming content and other Flutter technology to enhance the experience offered to Snai’s customers,” the group explained.

To fund the deal, Flutter agreed deals with certain unnamed banks for a senior secured first lien term loan worth €2.5bn.

On 29 April, those agreements were converted into a definite bridge credit agreement. The facility will mature on 29 April 2026.

Flutter noted that while leverage will initially increase, it is expected to reduce to the “highly visible profitable growth opportunities that exist across the group”.

Peter Jackson, Flutter CEO, said: “I am delighted to welcome Snai, one of the leading gaming brands in Italy, to the group. Snai’s significant omnichannel presence brings strategically important assets to enhance Flutter’s position in Italy.

“The transaction fits perfectly with our strategy for value-creating M&A and is expected to bring about significant growth opportunities for Snai by providing access to Flutter’s market-leading products and capabilities.

“It is with great excitement we can now start working with Snai to implement our robust integration plans and begin to realise the compelling benefits of this combination.”

For Playtech, the sale of Snaitech finalises its shift to becoming a pure B2B business.

The FTSE 250 firm said: “Completion of the transaction enables Playtech to focus on its technology-led offering in high-growth B2B gambling markets, with an accelerated growth plan and an extensive portfolio of strategic ventures.

“The board believes that there is significant further upside from Playtech’s simplified business model and focused B2B strategy going forward.”

Playtech added it intends to return €5.73 per share to shareholders by way of a special dividend, to be paid in June, with returns totalling €1.8bn.

The post Flutter completes €2.3bn acquisition of Snaitech first appeared on EGR Intel.

 CEO Peter Jackson says newly acquired asset fits “perfectly” into wider group, with operating synergies of at least €70m having been targeted
The post Flutter completes €2.3bn acquisition of Snaitech first appeared on EGR Intel.