Flutter Entertainment has completed its €2.3 billion acquisition of Italian gaming operator Snaitech from Playtech.
The addition of Snai to Flutter’s portfolio of brands increases the company’s share of the Italian online gaming market to 30 per cent and also adds a strong retail presence, which the company said is of strategic importance due to Italy’s gambling advertising restrictions.
Flutter Entertainment is aiming to achieve operating cost synergies of at least €70 million over the next three years post-closing, alongside capital expenditure synergies of €10 million.
“I am delighted to welcome Snai, one of the leading gaming brands in Italy, to the Group,” said Peter Jackson, CEO of Flutter Entertainment. “Snai’s significant omnichannel presence brings strategically important assets to enhance Flutter’s position in Italy.
“The transaction fits perfectly with our strategy for value creating M&A and is expected to bring about significant growth opportunities for Snai by providing access to Flutter’s market leading products and capabilities. It is with great excitement we can now start working with Snai to implement our robust integration plans and begin to realise the compelling benefits of this combination.”
The transaction was financed by a €2.5 billion debt facility which matures on April 29, 2026, and bears interest at an annual rate equal to EURIBOR plus 1.25 per cent.
The sale of Snai enables Playtech to focus on its B2B business and strategic ventures, and to pay out a special dividend to shareholders.
The previously announced special dividend of €5.73 per share is expected to be announced shortly and paid in June.
Shares in Flutter Entertainment plc. (NYSE:FLUT) were trading 1.95 per cent lower at $233.96 per share in New York Wednesday, while shares in Playtech plc. (LSE:PTEC) were down 1.05 per cent at 753.00 pence per share in London.