Flutter Entertainment, the parent company of Paddy Power, has agreed to purchase Snaitech, an Italian firm, in an agreement valued at around €2.3 billion. Snaitech is a prominent business-to-consumer operator in Italy and is currently a subsidiary of Playtech. The acquisition aligns with Flutter’s international market investment strategy and is anticipated to be finalised by the second quarter of 2025.
Presently, Snaitech holds the third highest position among operators in the Italian market, with 291,000 average monthly users and just shy of a 10% market share. The company reported €256 million in adjusted earnings before interest, tax, depreciate, and amortisation for its 2023 fiscal year, along with 100% regulated revenue of €947 million.
As a result of the deal, Flutter is expected to gain an online market share of approximately 30%, along with additional operating cost synergies of at least €70 million.
Italy boasts the largest regulated gambling market in Europe, yet online market penetration remains relatively low. This presents an opportunity for Flutter to capitalise on the anticipated shift towards digital platforms, with projections of a 10% growth in the online market over the next three years.
Flutter’s CEO, Peter Jackson, expressed excitement about the deal, stating that the transaction aligns perfectly with their strategy for value-creating mergers and acquisitions. He said it will present significant opportunities to accelerate Snaitech’s growth by granting them access to Flutter’s leading products and abilities in the US and globally. He also expressed his eagerness to work with the Snaitech team to maximise the growth potential for the combined enterprise.