Flutter Entertainment, has agreed to acquire Snaitech SpA (Snai), one of Italy’s leading omni-channel operators, from a subsidiary of Playtech plc for €2.3b/£1.9bn.

Flutter, which owns Leeds-based Sky Betting and Gaming, says the deal “fully aligns” with its strategy to invest in leadership positions in international markets. It expects the deal to close by quarter two 2025.

Snai has 291,000 average monthly players and has a strong retail presence with over 2,000 sites. It generated 100% regulated revenue of €947m/£798m (which is after the deduction of gaming duties) and Adjusted EBITDA of €256m/£216m in financial year 2023, of which 50% was generated online.

Peter Jackson, Flutter CEO, said: “I am happy to announce the acquisition of Snai, one of the leading players in Italy, Europe’s largest regulated market.

“This transaction is compelling strategically and financially. 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 US and globally.

“I look forward to welcoming the Snai team to the Flutter Group and working with them to maximise the growth opportunity for our combined businesses.”

Flutter adds the deal will deliver an enhanced competitive position in a fast growing, regulated market:

It notes that Italy is the largest gambling market in Europe with an estimated gross gaming revenue of €21bn/£17.7bn in 2023.

Flutter says Snai’s customers, who use both online and retail channels, are more loyal, active and generate more revenue per player than online only players.

It explains this increasingly diversified retail footprint will give Flutter access to increased omni-channel customer acquisition opportunities to capitalise on online growth.