Flutter Entertainment has acquired the Italian firm, Snaitech (Snai) for a cash consideration of €2.3bn (£1.94bn).

The firm, which is being purchased from Playtech, is the number three online operator in the Italian betting and gaming sector, boasting 291,000 average monthly players.

Snaitech has a retail presence across more than 2,000 sites, giving it the number two market share position in both betting (19%) and gaming (14%).

In the four fiscal years to 2023, online revenue and adjusted EBITDA at the firm has grown at a compound rate of 26% and 32% respectively, with €947m (£798m) raised in regulated revenue in the latest financial year.

Flutter has made the investment to enhance its position in the Italian market, which is the largest gambling market in Europe with an estimated gross gaming revenue of €21bn (£17.7bn) in 2023.

The cash consideration is valued at £6.27 per Playtech share, which is a premium of 16.5% of its latest share price.

Chief executive officer at Flutter Entertainment, Peter Jackson, said: "I am delighted to announce the acquisition of Snai, one of the leading players in Italy, Europe's largest regulated market.

"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 US and globally.

"I look forward to welcoming the Snai team to the Flutter Group and working with them to maximize the growth opportunity for our combined businesses."

The deal, which is set to be completed in the second quarter of the year, comes after Flutter announced the acquisition of Brazilian firm, NSX Group, for £266m last week.

---