Flutter Entertainment has completed its acquisition of Snaitech, a Playtech subsidiary, for a cash consideration based on an enterprise value of €2.3bn.
To be included as part of the operator’s International division, Flutter initially announced the agreement to acquire Snai in September last year as part of an ambition to achieve the gold medal position in the Italian gambling market.
Pairing Snai with its existing Sisal operations, Flutter says the acquisition has increased its online market share in Italy by approximately 30%, noting as well that advertising restrictions “increase the strategic importance of Snai’s strong and complementary retail presence”.
In addition, the operator says Snai’s omnichannel customers and recognisable brand will help with customer acquisition opportunities in the country.
Peter Jackson, CEO of Flutter, commented: “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.
“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 that we can now start working with Snai to implement our robust integration plans and begin to realise the compelling benefits of this combination.”
Flutter also noted that the Snai acquisition has “target operating cost synergies of at least €70m, to be achieved within three years of closing at a cost of 1.25x and capex synergies at €10m”.
The operator aims to achieve this via utilising Flutter Edge services across pricing and risk management, in-house iGaming content and other Flutter technology.
To fund the acquisition, the company has entered into an amended and restated commitment letter with certain banks to obtain binding commitments in respect of a senior secured first lien term loan comprising an aggregate Euro principal of €2.5bn.
On 29 April, Flutter and certain of its subsidiaries converted the binding commitments into a definitive bridge credit agreement with the commitment parties to draw down the facility in full.
Flutter plans to use the facility to finance/refinance amounts linked to the acquisition, certain indebtedness, pay fees and/or expenses linked to the foregoing, as well as finance general corporate purposes and working capital of the group.
The facility will mature on 29 April 2026, with options for two additional six-month extensions. It will also bear interest at a per annum rate equal to EURIBOR with an applicable margin equal to 1.25%, subject to certain step-ups over the term of the facility.
Flutter will provide a further update, including financial guidance, when it publishes its first quarter of 2025 results next month on 7 May.
