:max_bytes(150000):strip_icc()/GettyImages-2151360117-82d05b0803774712906fe71e8144eca4.jpg "FanDuel Parent Flutter Expands Footprint With Acquisition of Italy’s Snaitech")
Key Takeaways
- Flutter Entertainment is expanding its international market with the acquisition of Snaitech, one of the largest online gambling companies in Italy.
- Flutter owns a number of gambling companies in a number of markets, including FanDuel in the U.S.
- The deal values Snaitech at 2.3 billion euros ($2.56 billion), and is expected to close in the second quarter of next year.
FanDuel parent Flutter Entertainment (FLUT) said Tuesday that it has agreed to a deal to acquire Snaitech, one of Italy’s largest online gambling platforms.
The company said the deal, which values Snaitech at 2.3 billion euros ($2.56 billion), expands its access to Italy, which is Europe’s largest gambling market at 21 billion euros in gross revenue in 2023. Snaitech will add to Flutter’s previous efforts in Italy and give the company an estimated share of roughly 30% of the country’s online gaming market, it said.
Flutter Sees Deal as ‘Compelling’
“This transaction is compelling strategically and financially,” Flutter Chief Executive Officer (CEO) Peter Jackson said. “It fits perfectly within our strategy for value creating M&A and creates a significant opportunity to accelerate Snai’s growth by providing them with access to Flutter’s market leading products and capabilities both in the U.S. and globally.”
Snaitech parent Playtech said “as soon as practicable” after the deal closes, it plans to return 1.7 billion to 1.8 billion euros to shareholders through a special dividend.
Flutter’s interest in the acquisition was reported last month, around when the company posted second-quarter earnings that beat expectations.
Flutter shares, which edged higher in premarket trading Tuesday, are up 25% this year.