Flutter details three-point plan as firm completes purchase of Playtech subsidiary Snaitech

Flutter Entertainment has completed the purchase of Italian iGaming operator and former Playtech subsidiary Snaitech in a £1.9billion deal.

Revealed on Wednesday, this agreement will see Snaitech join Paddy Power, Sky Bet and other leading iGaming platforms under the Flutter umbrella. The move marks Flutter’s intent to broaden its European appeal – as Snaitech is one of Italy’s primary industry operators. 

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It is not the first time Flutter has ventured into the Italian market. In 2022, the iGaming titan welcomed lottery group, Sisal, in a £1.62bn deal.

The group was previously owned by Isle of Man-based firm, Playtech, following a £718m takeover in 2018. This latest transaction evidenced a 16.5% boost in Snaitech’s value since Playtech’s purchase of the organisation. 

According to a public statement, Flutter will assign Snaitech to its southern Europe and Africa international division. This move goes hand in hand with the conglomerate’s plans to deepen international ties through investments in “leadership positions in attractive markets.”

Flutter pointed to three main benefits deriving from its Snaitech buyout, with Italy-facing advertising listed first. Restrictive advertising laws had prevented Flutter from bolstering its market share prior to the addition of Snaitech - but this coup is set to “increase Flutter’s online market share in Italy” as the giant benefits from Snaitech’s “strong and complimentary retail presence.”

Second, Flutter sees the acquisition as crucial to its “local hero” portfolio. Essentially, this project targets expansive and diversified opportunities pertaining to customer retention in Italy. 

Third on the docket is “value creation” - in which Flutter seeks to enhance the holistic experience for Snaitech consumers. Moreover, Flutter has set its sights on operating cost synergies in the region of £59m within three years of closing this purchase.

In a short letter following the deal’s announcement, Flutter CEO, Peter Jackson, hailed Snaitech as a leader in the Italian iGaming scene:

“I am delighted to welcome Snai, one of the leading gaming brands in Italy, to the Group. Snai’s significant omnichannel presence brings strategically important assets to enhance Flutter’s position in Italy.”

Jackson also detailed the strategic alignment brought about by the purchase: “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.”

The 49-year-old - who has served as Flutter CEO since 2018 - concluded with a view to the future: “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.”

As for Playtech - the gambling software developer is expected to focus on B2B (business-to-business) relations in the American and European markets. This week’s news allows the firm to strengthen B2B investment across the board - while company shareholders will receive a generous dividend payout as a result of the transaction.