DAVY VIEW

Flutter has this morning confirmed that it has reached an agreement to purchase Italy’s third-largest online B2C business, Snai, for €2.3bn/$2.56bn. When combined with Flutter’s existing Sisal business, Flutter will have a no.1 position in Italy. The acquisition is at an attractive multiple, particularly given the quantum of the synergies. Given the importance of dominant market positions, the additional exposure to the attractive Italian market and the quantum of the synergies, we believe this deal will be well received by the market. Post this transaction and the recent deal in Brazil, Flutter will be in the enviable position of having no.1 or podium positions in most of the world’s regulated gambling markets. This is a compelling position that will bestow numerous structural competitive advantages.