FanDuel Parent Makes $2.6 Billion Italian Purchase
In a major move within the sports betting industry, Flutter Entertainment, the parent company of popular daily fantasy sports platform FanDuel, has announced a $2.6 billion acquisition of leading Italian gambling operator Sisal. The deal, which has been in the works for several months, marks a significant step in Flutter’s expansion into the European market.
Sisal, which was founded in 1946 and is headquartered in Milan, is one of Italy’s oldest and largest gaming companies, offering a wide range of sports betting, casino, and lottery services. The acquisition of Sisal will give Flutter a significant foothold in the lucrative Italian gambling market, which has seen rapid growth in recent years.
The deal comes at a time when Flutter is facing increased competition in the US sports betting market, where it operates under the FanDuel brand. The company has been working to diversify its revenue streams and expand into new markets to offset the impact of regulatory challenges in the US.
“The acquisition of Sisal represents a major milestone for Flutter Entertainment as we continue to execute on our strategy of expanding our presence in key international markets,” said Peter Jackson, CEO of Flutter Entertainment. “Italy is a key market for us, and the addition of Sisal’s well-established customer base and strong brand will further enhance our position in this important market.”
The acquisition of Sisal is expected to be completed by the end of the year, pending regulatory approval. The deal is expected to have a positive impact on Flutter’s earnings and is expected to generate significant cost synergies over the coming years.
The acquisition of Sisal is just the latest in a series of moves by Flutter Entertainment to expand its presence in the global gambling market. In January, the company completed a $6 billion merger with The Stars Group, creating a global gambling giant with operations in more than 100 countries.
Flutter’s stock price rose by 2.5% in early trading following the announcement of the acquisition, highlighting investor confidence in the company’s growth strategy. The company’s stock has more than doubled over the past year, outperforming the broader market.
As Flutter Entertainment continues to expand its presence in key international markets, the acquisition of Sisal represents a significant step forward in the company’s growth strategy. With the Italian gambling market showing strong growth potential, Flutter is well-positioned to capitalize on this opportunity and drive further value for its shareholders.
