(Bloomberg) — Flutter Entertainment Plc agreed to buy Playtech Plc’s Italian gambling business for an enterprise value of €2.3 billion ($2.6 billion) in its latest international acquisition as the Fanduel owner takes advantage of a growth surge in the US to expand.
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The deal for Playtech’s Snaitech division is expected to be closed by the second quarter of 2025, Flutter said in a statement on Tuesday.
Flutter, which has benefited from a surge of new customers and revenue in the US, has also aggressively expanded internationally in recent years. Chief Executive Officer Peter Jackson told Bloomberg last month that mergers were part of the company’s strategy to build “podium positions” in local markets, and the company has bought businesses in Italy, Georgia and India.
Flutter, which moved its primary listing to New York from London earlier this year, said last week it will buy a majority stake in NSX Group, Brazil’s fourth-biggest online gaming operator. The value of gambling deals, investments and joint ventures globally has quadrupled in the last 12 months, according to data compiled by Bloomberg.
Milan-based Snaitech, founded in 1990, is one of Italy’s leading betting companies. It operates gaming machines, manages horse racing and sports betting, and owns race tracks. It represents Playtech’s primary consumer business and after the deal, Playtech’s main business will be oriented around selling software to other gambling companies.
The Snaitech business makes up the majority of Playtech’s business-to-consumer operations, which accounted for 60% of the company’s revenue last year, according to its last annual report.
On completion, Flutter said it will control approximately 30% share of the market in Italy when combined with its existing business in the country.
Playtech shares surged 15% in London on Monday to 753 pence giving the company a market value of £2.3 billion after a Sky News report that the deal was imminent. The stock has gained 68% this year. Flutter shares rose 1.3% in New York on Monday to $224.34.
(Updates with additional context throughout)
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