Flutter Entertainment, a global leader in online sports betting and iGaming, announced today that it has agreed to acquire the subsidiary of Playtech plc, one of Italy's leading omni-channel operators, Snai tech, for a cash enterprise value of 2.3 billion euros.
This acquisition is fully in line with Flutter's strategy to invest in international market leadership. The transaction is expected to be completed in the second quarter of 2025 and is expected to immediately increase earnings per share.
Snai is the third largest online operator in the Italian market, with a 9.9% share in 2023 and an average of 291,000 players per month.
In the four fiscal years up to 2023, online revenue and adjusted EBITDA grew at compound annual growth rates of 26% and 32%, respectively. This was supported by a strong retail business, with over 2,000 sites driving the gambling industry (19%) and gaming industry (14%) to rank second in retail shares. In the 2023 fiscal year, Snai generated 947 million euros in 100% regulated revenue (after deducting gambling taxes) and an adjusted EBITDA of 256 million euros, with 50% coming from online revenue.
After the transaction is completed, Flutter will combine with its existing Italian business to occupy a leading position in Italy, with an online share of about 30%, which will bring efficiency benefits to the group in key markets. This includes Sisal, whose AMP and revenue had compound growth rates of 27% and 17% respectively between the second quarter of 2022 and the second quarter of 2024, with online share growth of 270bps. This outstanding performance reflects the combination of strong local execution and the advantages of Flutter Edge, and we expect Snai to replicate this effective combination. This transaction is expected to bring at least 70 million euros in operating cost synergies and incremental revenue synergies.
In terms of cost synergies, the multiples of this transaction are as attractive as those of the Sisal transaction. By the second year, the multiples of this transaction will also be far higher than our internal return standards.
CEO Peter Jackson said: "I am delighted to announce the acquisition of Snai, one of the leading companies in Italy, Europe's largest regulated market. From both a strategic and financial perspective, this transaction is very attractive. It is fully in line with our value-creating M&A strategy and provides Snai with a significant opportunity to accelerate its growth, allowing Snai to leverage Flutter's market-leading products and capabilities in the US and globally."
I look forward to the Snai team joining the Flutter Group and working with them to maximize the growth opportunities of our combined business."
