FanDuel parent Flutter Entertainment is in talks to acquire one of Italy’s largest gambling brands.
In a press release Wednesday, Flutter confirmed it is negotiating a deal to acquire Snaitech, the market leader in Italian sports betting. This followed Snaitech’s parent company, Playtech, acknowledging a report that it is in discussions to sell the brand to Flutter in a transaction reportedly valued at up to €2 billion ($2.78 billion).
“Flutter Entertainment plc (“Flutter”) (NYSE: FLUT; LSE: FLTR) notes the announcement by Playtech plc (“Playtech”) regarding a potential sale of its Snaitech business to Flutter and confirms that it is in discussions to acquire Snaitech,” Flutter said in the press release. “At this stage, there is no certainty that Flutter will proceed with an acquisition. Flutter will provide an update as appropriate.”
Flutter keeps buying around the world
Flutter has rapidly expanded its global gaming dominance through mergers and acquisitions, including the purchase of FanDuel in 2018 and British rival Betfair in 2016, before it rebranded from Paddy Power.
The company already owns Sisal Gaming in Italy and other large European operators like Sky Bet, as well as prominent brands in other major gaming markets like Sportsbet in Australia.
Most recently, it acquired London-based software developer Beyond Play.
CEO talks M&A appetite
Flutter CEO Peter Jackson addressed the current M&A environment in a recent earnings call with investors.
“We ensure that we consider every opportunity in our space. If necessary, we are willing to go beyond our leverage target to pursue the right type of deal, provided we have confidence in our ability to deleverage quickly.”
When asked about reports suggesting Flutter might join a bid for ESPN Bet-parent Penn Entertainment., Jackson noted that Flutter’s name often surfaces in merger rumors, adding, “Some of the best deals are the ones we haven’t done.”
What Flutter would be buying
Playtech acquired Snaitech in 2018 for €846 million ($928.7 million).
The Italian brand operates more than 1,600 retail betting points of sale, over 38,000 slots and over 10,000 video lotteries, according to its website. It also controls two horse racing tracks in Milan and one in Tuscany, multiple TV channels and broadcasts networks, and German and Australian betting operator HappyBet.
A sale of Snaitech would leave Playtech as purely a third-party gaming software provider. A formal agreement on the Snaitech sale is not expected until September, according to Sky News.
