Flutter Closes Its $2.6B Acquisition of Snai from Playtech

Flutter Entertainment, a leading online sports betting and iGaming company, announced that it has closed its previously announced acquisition of Snaitech (Snai), one of Italy’s top omni-channel operators.

Flutter Cements Its Leadership in Italy

Consistent with the earlier announcement, Flutter will acquire Snaitech for EUR 2.3 billion ($2.6 million) from a subsidiary of Playtech. Flutter added that the acquisition will be positioned within the Southern Europe & Africa region of Flutter’s International division.

The transaction is in line with Flutter’s established strategy of investing in leadership positions in key international markets. As Europe’s largest regulated gaming market, Italy is important to Flutter’s overall growth plans.

Since the country has a variety of advertising restrictions in place, investing in an already popular brand would position Flutter for further growth in Italy, increasing its online market share to roughly 30%.

In addition to that, the integration of Snai into Flutter’s operations will enhance its “local hero” brand portfolio. The latter company noted that Snai enjoys a “strong base of highly engaged omnichannel customers” and is likely to continue growing.  

Flutter predicted cost synergies of a least EUR 70 million ($79.4 million) to be achieved within three years of the deal’s closing at a cost of 1.25x, as well as capex synergies of EUR 10 million. The company elaborated that revenue synergies will be underpinned by Flutter Edge’s capabilities across pricing and risk management, in-house content and technology.

CEO Jackson Welcomed Snai to the Group

Peter Jackson, Flutter’s chief executive officer, commented on the agreement, welcoming Snai to the broader Flutter family. He praised Snai’s significant omnichannel presence and said that it would be crucial to Flutter’s operation in Italy.

In addition to that, Jackson reasserted that the transaction is in line with Flutter’s strategy to generate value through strategic M&A deals.

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

Peter Jackson, CEO, Flutter

Flutter Funded the Deal Thanks to a Loan

Flutter clarified that the deal was completed using the money from a first-lien term loan comprising an aggregate Euro principal of €2.5 billion ($2.8 billion). This facility is set to mature on April 29, 2026, with two additional 6-month extension options.

The facility will furthermore bear interest at an annual rate equal to EURIBOR plus an applicable margin equal to 1.25%.

In the meantime, Playtech, whose subsidiary sold Snai to Fluter, announced a special dividend of EUR 5.73 ($6.5) per ordinary share to its shareholders. This means that shareholders will receive a total of EUR 1.8 billion ($2 billion).