Flutter Entertainment, a global leader in online sports betting and iGaming, announced an agreement to acquire Snaitech S.p.A., one of Italy’s top omnichannel operators. The acquisition, valued at 2.3 billion euros in enterprise value, will bolster Flutter’s strategic efforts to expand its leadership to overseas markets. With the acquisition expected to be completed by the second quarter of 2025, Flutter expects the merger to immediately contribute to earnings per share.

Snaitech’s Market Position and Performance:

Snitech, the third-largest online operator in Italy, has a 9.9% market share with an average of 291,000 players per month. According to a press release from Flutter, the company has seen solid growth over the past four financial years, with online sales and adjusted EBITDA rising at 26% and 32% compounding rates, respectively. This growth is supported by its significant presence at more than 2,000 sites, positioning itself as a leader in betting and gaming within the retail space.

Upon completion of the acquisition, Flutter will increase its market share in Italy to about 30% online, combining Snaitech’s business with its current operations. The integration is expected to provide significant efficiency benefits and strengthen Flutter’s competitiveness in key markets. The integration is expected to generate operational cost synergies and additional revenue synergies of at least 70 million euros through “Flutter Edge,” a framework that covers a proprietary technology platform that aims to improve pricing, risk management, and customer experience.

The acquisition is determined by customary merger control and regulatory authorities’ approval and is consistent with Flutter’s broader strategy of investing in value-creating mergers and acquisitions. As of June 30, 2024, the company had a 2.6x leverage ratio, with a net debt of $5.5 billion. The acquisition is expected to result in a temporary increase in leverage for Flutter, which is expected to be quickly reduced by profitable growth opportunities across the group.

Future outlook and market impact:

Italy, Europe’s largest regulated gambling market, has a relatively low online penetration rate, accounting for 21% of the market’s total gaming revenue, providing significant growth potential. Flutter’s acquisition of Snitech is a strategic move to capitalize on the transition to a digital platform where the online gambling sector is expected to grow at a compound rate of about 10% over the next three years.

As reported by The Irish Times, Flutter CEO Peter Jackson said of the acquisition, “This acquisition is strategically and financially attractive. It perfectly aligns with our strategy for value-creating M&A and creates a significant opportunity to accelerate Snai’s growth by providing access to Flutter’s market-leading products and capabilities in the United States and around the world.” 실시간 바카라사이트

As the deal closes, Flutter Entertainment will discuss additional details and strategic plans on September 25 on Investor Day, highlighting the expected synergies and growth opportunities from the large acquisition.