Flutter Entertainment Buys Snaitech From Playtech for $2.56 Billion

By Najat Kantouar

Flutter Entertainment said it is buying Italian gambling company Snaitech from Playtech in a cash deal valued at 2.3 billion euros ($2.56 billion).

The parent company of FanDuel and other gaming and gambling brands said Tuesday that the acquisition was in line with its strategy to invest in international markets. The deal is expected to be complete by the second quarter of next year, and boost earnings per share immediately.

"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 Snai's growth by providing them with access to Flutter's market leading products and capabilities both in the U.S. and globally," Flutter Chief Executive Officer Peter Jackson said.

Confirming the sale, Playtech said it would return between 1.7 billion and 1.8 billion euros to shareholders through a special dividend as soon as possible after the deal completes.

"While Snaitech has been an important part of the Playtech group's growth in recent years, the board agreed that this transaction represents a compelling opportunity to maximize value for our shareholders while also allowing them to share in further upside from continued ownership of a leading B2B business," Playtech Chief Executive Officer Mor Weizer said.

The companies said on Aug. 14 that they were in talks over a potential deal for Snaitech.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

September 17, 2024 02:57 ET (06:57 GMT)

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