Flutter Entertainment has agreed to acquire Snaitech, one of Italy’s leading omni-channel operators, from a subsidiary of Playtech plc, for cash consideration based on an enterprise value of €2.3bn.
The acquisition fully aligns with Flutter’s strategy to invest in leadership positions in international markets. It should close by Q2 2025 and it is expected to be immediately accretive to earnings per share.
Snai is the number three online operator in the Italian market with a 9.9 per cent share in 2023 and 291,000 average monthly players. Online revenue and Adjusted EBITDA have grown at a compound rate of 26 per cent and 32 per cent respectively, in the four fiscal years to 20233. This is supported by a strong retail presence with over 2,000 sites driving a number two retail share position in both betting of 19 per cent and gaming of 14 per cent. Snai generated 100 per cent regulated revenue of €947m (which is after the deduction of gaming duties) and Adjusted EBITDA of €256m in financial year 2023, of which 50 per cent was generated online.
On completion, Flutter will assume the gold medal position in Italy with a 30 per cent online share when combined with its existing Italian business, which will deliver efficiency benefits in a key market for the Group. This includes Sisal, which, grew AMPs, and revenue at a compound rate of 27 per cent and 17 per cent respectively between Q2 2022 and Q2 2024, resulting in 270bps online share gain. This excellent performance reflects strong local execution combined with the benefits of the Flutter Edge, an effective combination we expect to repeat with Snai. The transaction is expected to deliver operating cost synergies of at least €70m along with incremental revenue synergies. On a post-cost synergy basis, the transaction is at a similarly attractive multiple to the Sisal transaction. It is also comfortably above our internal returns criteria by year two.
Peter Jackson, CEO, commented: “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. 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.
“I look forward to welcoming the Snai team to the Flutter Group and working with them to maximize the growth opportunity for our combined businesses.”