Flutter Entertainment (NYSE: FLUT; LSE: FLTR) has announced the completion of its acquisition of Snaitech S.p.A. ("Snai") for a cash consideration based on an enterprise value of €2.3 billion. This acquisition is expected to bring about significant growth opportunities for Snai, providing access to Flutter's market-leading products and capabilities.
The acquisition of Snai positions Flutter as a key player in Italy, Europe's largest regulated market, increasing its online market share to approximately 30%. This move aligns with Flutter's strategy to invest in leadership positions in attractive international markets.
Following the acquisition, Flutter expects to achieve target operating cost synergies of at least €70 million within three years of closing, along with capex synergies of €10 million. Revenue synergies are anticipated to be realized through leveraging Flutter's capabilities across pricing and risk management, in-house iGaming content, and other technology to enhance the customer experience.
In terms of financing, Flutter has entered into a bridge credit agreement to obtain binding commitments in respect of a senior secured first lien term loan comprising an aggregate euro principal of €2.5 billion. The facility is set to mature on April 29, 2026, with two additional 6-month extension options, bearing interest at a per annum rate equal to EURIBOR plus an applicable margin equal to 1.25%.
Flutter's CEO, Peter Jackson, expressed excitement about the acquisition, stating, "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."
Flutter will provide further financial guidance, including an update on the transaction's impact, as part of its first-quarter results on May 7, 2025. Today the company's shares have moved -0.7% to a price of $236.95. If you want to know more, read the company's complete 8-K report here.
