Online Betting: Flutter Acquires Snai for 2.3 Billion
Flutter, a global leader in online sports betting and iGaminghave reached an agreement for the acquisition of Snaitech (“Snai”), one of the leading omnichannel operators in Italyby a subsidiary of Playtech Plc, for a cash consideration based on an enterprise value of €2.3 billion.
The acquisition is perfectly in line with Flutter’s strategy of invest to consolidate its leadership in international markets. The transaction is expected to close in the second quarter of 2025 and will have an immediate positive impact on earnings per share.
Snai is the third online operator in the Italian marketwith a 9.9% market share in 2023 and 291,000 average monthly players. Online revenue and adjusted EBITDA have grown at a compound rate of 26% and 32%, respectively, over the last four years through 2023.
“These results are supported by a strong presence in the retail channel with over 2,000 points of sale”we read in a note, which lead Snai to be the second market operator in this segment both in sports betting (around 19%) and in gaming (around 14%).
In the 2023 financial year Snai generated revenues of 947 million euros (net of gambling taxes) and an adjusted EBITDA of 256 million euros, of which 50% was generated online”. Upon completion of the transaction, Flutter will become the leading player in Italy, with an online market share of approximately 30%, considering existing Italian operations, thus offering efficiency benefits in a strategic market for the Group.
A market that also includes Sisal, which recorded growth in average monthly players (AMP) and revenues at a compound rate of 27% and 17%, respectively, between the second quarter of 2022 and the second quarter of 2024, with a consequent increase of 270 basis points in its online market share. According to forecasts, it is stated in a note, it is believed that the transaction could generate operating cost synergies of at least 70 million euros, in addition to incremental revenue synergies.
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