Flutter Entertainment Plc has announced a major international expansion with its latest acquisition. The company has agreed to purchase Playtech Plc’s Italian gambling division, Snaitech, for €2.3 billion ($2.6 billion). This move is part of Flutter’s strategy to leverage its recent success in the U.S. and to strengthen its global presence. The acquisition, set to close by the second quarter of 2025, will significantly bolster Flutter’s market share in Italy.
Strategic Expansion
Flutter, the owner of FanDuel, has been on a growth spree, capitalizing on the surge in U.S. gaming revenue and exploring opportunities for international expansion. Chief Executive Officer Peter Jackson emphasized the company’s focus on acquiring businesses to secure leading positions in local markets. This acquisition follows Flutter’s recent purchase of a majority stake in Brazil’s NSX Group, the country’s fourth-largest online gaming operator.
With the Snaitech acquisition, Flutter will control approximately 30% of the Italian market, further consolidating its position in one of Europe’s key gambling hubs. Snaitech, established in 1990 and based in Milan, is a leading player in Italy’s betting industry, operating gaming machines, managing horse racing and sports betting, and owning race tracks. The division is Playtech’s primary consumer business, which accounted for 60% of the company’s revenue last year.
Market Reaction
Playtech’s shares experienced a notable surge, rising 15% in London to 753 pence following the announcement. This increase in stock value reflects investor optimism about the deal, which is expected to reshape Playtech’s business focus towards software development for other gambling companies. Playtech’s stock has surged 68% this year, indicating strong market confidence.
Flutter’s shares also saw a slight increase, rising 1.3% in New York to $224.34. The company’s move to shift its primary listing to New York earlier this year aligns with its aggressive expansion strategy.
Industry Impact
The global value of gambling deals, investments, and joint ventures has significantly increased, quadrupling over the past year. Flutter’s strategic acquisitions are part of a broader trend in the industry, as companies seek to capitalize on growing opportunities in international markets.
As Flutter continues to expand its footprint, the acquisition of Snaitech underscores its commitment to strengthening its position in key gambling markets and enhancing its global presence.
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