Flutter Entertainment shares up on €2.3 bln Snaitech deal

Investing.com -- Shares of online sports betting and iGaming operator,  Flutter Entertainment (LON:FLTRF ) (NYSE:FLUT ) rose on Tuesday after it announced its agreement to buy Snaitech from Playtech plc (LON:PTEC ). 

The €2.3 billion deal fits with the Dublin-based company's strategy to strengthen its position in key international markets. It is set to close by the second quarter of 2025 and will immediately boost earnings per share.

As the parent company of brands like FanDuel, Paddy Power , and Betfair, the global gambling giant aims to strengthen its foothold in Italy, Europe’s largest regulated market. 

Snai, currently the third-largest online operator in the country with a 9.9% market share and 291,000 average monthly players, represents an asset for the digital gaming conglomerate. 

The deal will combine Snai’s strong retail presence—boasting over 2,000 sites—with the betting powerhouse’s robust online platform.

Once the deal is completed, the combined company will hold the top spot in Italy with an estimated 30% share of the online market. 

The acquisition is projected to generate at least €70 million in cost synergies and additional revenue through the integration of technology and product offerings.

“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,” said Peter Jackson, CEO of Flutter Entertainment.

Source: Investing.com