Playtech Sells €2.3Bn Snaitech
Snaitech is becoming a part of the gambling giant Flutter Entertainment after its previous owner, Playtech, agreed on a sale.
Flutter Entertainment has sealed a deal worth €2.3 billion for Snaitech. ? TheDigitalArtist, Pixabay
Playtech Sells €2.3Bn Snaitech to Gambling Giant Flutter Entertainment
Flutter Entertainment has agreed on a deal to purchase Snaitech from Playtech.
An agreement has been sealed for Flutter, one of the largest gambling groups in the world, to acquire Snaitech for €2.3 billion. Flutter described Snaitech in a statement as one of Italy’s leading omni-channel operators and hailed its 2023 market share of almost 10 per cent.
The number three operator in the Italian market, Snaitech, will bring 291,000 average monthly players to Flutter when the transaction is completed in the first half of 2025. Snaitech runs a retail betting network with more than 1,608 points of sale across the country.
Chief Executive of Flutter, Peter Jackson, said he was ‘delighted’ to confirm the acquisition of Snai, which he described as ‘one of the leading players in Italy’. He added:
“I look forward to welcoming the Snai team to the Flutter Group and working with them to maximise the growth opportunity for our combined businesses.” – Peter Jackson, Chief Executive of Flutter
Flutter Moves Into Top Spot
The purchase of Snaitech from Playtech means Flutter is set to become the biggest gambling company in Italy, which is regarded as Europe’s top regulated market.
Data released by Flutter shows Italy is currently the largest gambling market on the continent. In 2023, the country had an estimated gross gaming revenue of €21 billion.
However, Flutter still believes there is significant room for growth in online operations. Italy’s online penetration stands at just over 20 per cent, which compares to around 60 per cent in more mature markets such as Australia and the UK.
Flutter feels its purchase of Snaitech is well-timed to make the most of expected growth in digital adoption in the coming years. The company forecasts online market growth at a compound rate of close to 10 per cent over the next three years.
Jackson, Flutter’s CEO, added in the company’s statement:
“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.” – Jackson, CEO of Flutter
Flutter and Playtech Shares Rise
Flutter, which owns big betting brands like Paddy Power, FanDuel, and Betfair, saw its share price rise after it announced it would purchase Snaitech from Playtech.
Having moved its primary stock market listing to New York recently, Flutter Entertainment shares are up by almost four per cent in the past five days.
Playtech is expected to become more of a business-to-business software provider after agreeing to cash in on Snaitech, and its own shares are also up this week.
