DUBLIN (dpa-AFX) - Flutter Entertainment (FLUT), the global leader in online sports betting and iGaming, Wednesday announced that it has completed its acquisition of Snaitech S.p.A. (Snai) from a Playtech subsidiary.
The deal, valued at an enterprise worth of €2.3 billion, positions Snai within Flutter's Southern Europe & Africa segment under its International division.
This acquisition strengthens Flutter's presence in Italy-the largest regulated gambling market in Europe. Despite its size, Italy has low online penetration, creating a strong growth opportunity. Snai's widespread retail network is expected to play a key role in navigating advertising restrictions and improving Flutter's online market share in Italy to around 30%.
The move also enhances Flutter's portfolio of strong local brands. Snai's high customer engagement and recognizable brand presence are anticipated to broaden Flutter's customer acquisition strategies in Italy.
Significant operational synergies are expected, including at least €70 million in operating cost savings over three years and €10 million in capex synergies. Revenue gains are projected through the integration of Flutter's proprietary technology, content, and pricing strategies.
CEO Peter Jackson expressed enthusiasm over the acquisition, highlighting Snai's strategic importance and expected growth through access to Flutter's products and infrastructure. He noted that the integration would begin immediately to unlock long-term value.
To finance the acquisition, Flutter utilized a €2.5 billion senior secured bridge credit facility arranged with major banks. This facility, maturing in April 2026 with two optional six-month extensions, carries interest at EURIBOR plus a 1.25% margin. It will also cover refinancing of existing debts and support general corporate needs. Despite a temporary rise in leverage, Flutter reiterated its commitment to a medium-term leverage ratio of 2.0-2.5x.
FLUT is currently trading at $238.77 or 0.06% higher on the NYSE.
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