Flutter Entertainment agrees £2 billion deal to buy leading Italian operator Snaitech

Flutter Entertainment has strengthened its position as the largest gambling company in Italy with the news that it has agreed a deal to buy Snaitech from Playtech in a deal worth nearly £2 billion.

The owner of Paddy Power and Sky Bet already has a presence in Italy through its Sisal brand, but the acquisition of Snaitech for €2.3bn (£1.94bn) will give it a 30 per cent share in Europe's largest regulated market.

Snaitech is the number three online operator in the Italian market with a 9.9 per cent share last year and 291,000 average monthly players.

It also has a strong retail presence with more than 2,000 sites, giving it the number two market share position in both betting (19 per cent) and gaming of (14 per cent).

Last year Snaitech generated revenue of €947 million after gaming duties were deducted and adjusted earnings of €256m, of which half were generated online. It also operates the San Siro racecourse in Milan.

The deal is expected to be completed by the second quarter of next year.

Flutter Entertainment chief executive Peter Jackson

Flutter chief executive Peter Jackson said: "I'm delighted to announce the acquisition of Snaitech, one of the leading players in Italy, Europe's largest regulated market. This transaction is compelling strategically and financially. It fits perfectly within our strategy for value-creating M&A and creates a significant opportunity to accelerate Snaitech's growth by providing them with access to Flutter's market leading products and capabilities both in the US and globally.

"I look forward to welcoming the Snaitech team to the Flutter group and working with them to maximise the growth opportunity for our combined businesses."

The news follows just days after it was announced that Flutter had bought a majority stake in the owner of leading Brazilian gambling brand Betnacional for $350 million (approx £266m).

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