The latest news in the world of gambling has seen Flutter Entertainment, a top player in online sports betting and iGaming, announce its plans to acquire Snaitech S.p.A., a prominent omni-channel operator in Italy. This move comes with a hefty price tag, as the transaction is valued at a staggering enterprise value of €2.3 billion. The acquisition is seen as a strategic decision by Flutter to strengthen its position in international markets, showcasing their commitment to growth and expansion.
With the deal expected to be finalized by the second quarter of 2025, Flutter is optimistic about the impact it will have on their earnings per share. The acquisition of Snaitech, currently the third-largest online operator in Italy, is set to boost Flutter’s market share significantly. Snaitech boasts an impressive 9.9% market share and averages 291,000 monthly players. Their growth over the past few years has been impressive, with online revenue and Adjusted EBITDA showing substantial increases at compound rates of 26% and 32% respectively.
The retail presence of Snaitech is also worth noting, with over 2,000 sites under their belt. This strong retail foundation has helped Snaitech establish itself as a leader in both the betting and gaming sectors within the retail domain. After the acquisition, Flutter will see its market share in Italy rise to approximately 30% online, showcasing the significant impact this merger will have on their operations.
The integration of Flutter and Snaitech is projected to result in operating cost synergies of at least €70 million, with additional revenue synergies expected through the implementation of the ‘Flutter Edge’ framework. This framework aims to enhance customer experiences through pricing, risk management, and proprietary technology platforms. The acquisition is subject to customary merger control and regulatory clearances, aligning with Flutter’s strategy of strategic investments in mergers and acquisitions.
Italy is considered Europe’s largest regulated gambling market, offering substantial growth opportunities for companies like Flutter. With only 21% of the market’s gross gaming revenue coming from online sources, there is significant room for growth in the online gambling sector. Flutter’s acquisition of Snaitech is perfectly timed to capitalize on this shift towards digital platforms, with the online gambling sector expected to grow by approximately 10% over the next three years.
Flutter CEO Peter Jackson expressed his excitement about the acquisition, stating, “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.” This sentiment is echoed by industry experts, who see this acquisition as a smart move by Flutter to solidify their position in the market.
As the deal moves towards completion, Flutter Entertainment is gearing up to discuss further details and strategic plans during its upcoming Investor Day on September 25. Investors and industry insiders will be eagerly awaiting insights into the synergies and growth opportunities that this major acquisition will bring to Flutter Entertainment. Exciting times lie ahead for the world of online gambling, as Flutter Entertainment continues to make waves with its strategic acquisitions and growth initiatives.
