Flutter Buys Italian Giant Snaitech
Flutter Entertainment has agreed to add Italian gaming operator Snaitech SpA to its global empire for a cool £1.9 billion.
The company already owns Paddy Power, Betfair, Sky Betting & Gaming, PokerStars, Fox Bet and FanDuel. Flutter has expanded aggressively and has now struck a deal with Playtech PLC to buy Sanitech in a deal that should be concluded next year.
Snaitech trades under the Snai banner and has more than 2000 betting shops in Italy, but also generates 50% of its earnings from its online operation. With this purchase, Flutter Entertainment will take 30% of the Italian gaming market, as it already owns the online lottery and sports betting portal Sisal.
Italy is second only to the United Kingdom in the European betting market and this is a major acquisition. Beyond that, Flutter execs are confident they can use the purchase to streamline both operations and boost their profits.
Flutter Entertainment is dual-listed, with a primary listing on the New York Stock Exchange and a secondary listing on the London Stock Exchange. When the news dropped, Flutter stock gained a healthy 1.3% in pre-market trading on the NYSE, so the money men approve of this aggressive strategy of acquisitions.
Playtech will distribute a special dividend of €1.7 billion to €1.8 billion upon the completion of the transaction, which is expected to be finalized by the second quarter of 2025.
