Deal Completion
Flutter Entertainment has officially closed its landmark acquisition of Snaitech (Snai), one of Italy's premier omni-channel gambling operators, in a transaction valued at €2.3 billion ($2.6 billion). The deal, which transfers ownership from Playtech's subsidiary, represents a significant expansion of Flutter's European operations, with Snai now positioned within the company's Southern Europe & Africa region under its International division.
Strategic Rationale
The acquisition perfectly aligns with Flutter's established international growth strategy of securing leadership positions in key regulated markets. As Europe's largest regulated gaming market, Italy presents substantial opportunities for Flutter's ambitious expansion plans. By acquiring Snai's well-established brand presence, Flutter cleverly navigates Italy's strict advertising restrictions while simultaneously boosting its online market share to approximately 30%.
Financial Projections
Flutter's financial forecasts for the acquisition appear promising, with projected cost synergies of at least €70 million ($79.4 million) expected within three years of completion. The integration process comes with a modest cost multiplier of 1.25x, alongside additional capital expenditure synergies of €10 million. The company emphasized that revenue enhancements would leverage Flutter Edge's sophisticated capabilities in pricing, risk management, proprietary content development, and technological innovation.
Executive Commentary
Peter Jackson, Flutter's Chief Executive Officer, expressed enthusiasm about welcoming Snai to the Flutter family. He highlighted Snai's substantial omni-channel presence as a crucial asset for Flutter's Italian operations and reaffirmed that the acquisition aligns perfectly with the company's strategy of creating shareholder value through strategic mergers and acquisitions.
Financing Structure
The transaction was financed through a first-lien term loan with an aggregate Euro principal of €2.5 billion ($2.8 billion), maturing on April 29, 2026, with two additional six-month extension options available. The loan carries an annual interest rate equal to EURIBOR plus a competitive margin of 1.25%.
Meanwhile, Playtech announced it would distribute a special dividend of €5.73 ($6.5) per ordinary share to its shareholders, totaling approximately €1.8 billion ($2 billion) from the proceeds of the sale.