Flutter Entertainment, the parent company of Paddy Power and FanDuel, is in negotiations to purchase Snaitech, the consumer division of Playtech, in a deal that could be valued at approximately £2 billion ($2.57 billion), SkyNews reported.
Snaitech, one of Italy’s largest gambling companies, has drawn Flutter’s interest as part of its ongoing global expansion strategy. In response to the ongoing speculation, both Flutter and Playtech have confirmed the ongoing talks regarding Snaitech, although a formal agreement is not expected to be reached before next month and both companies noted there is no guarantee the acquisition will proceed.
If the acquisition is finalized, Snaitech would be valued at a premium compared to Playtech’s current market capitalization, which was around £1.66 billion ($2.13 billion) as of Wednesday morning, with shares trading at approximately 548p. This potential sale would transform Playtech into a pure-play business-to-business (B2B) entity, which could, in turn, attract interest from other bidders.
Snaitech, operating under the brand Snai, reported a 5% increase in revenues to €946.6 million ($1043.34 million) in the last financial year, maintaining its position as a leader in the Italian sports betting market. The sale of Snaitech would represent a significant shift for Playtech, which has been the focus of several corporate transactions and takeover attempts in recent years.
In 2022, Playtech’s shareholders rejected a takeover bid from Aristocrat Entertainment, and subsequent discussions with 888 Holdings, now Evoke, also failed to result in a merger.
For Flutter, the acquisition of Snaitech would be the latest in a series of strategic moves under the leadership of CEO Peter Jackson. The company has been actively expanding its international footprint, with its recent acquisition of another Italian gambling group, Sisal, for €1.9 billion ($2 billion) in August 2022. It remains unclear whether Sisal would be formally merged with Snaitech if the deal proceeds.
On Tuesday, Flutter reported strong financial results for the second quarter, following similar positive announcements from its competitor Entain, the owner of Ladbrokes. Flutter, which recently relocated its primary stock market listing to the United States, now holds a market capitalization of nearly £26 billion ($36.81 billion).
Original article: https://www.yogonet.com/international/noticias/2024/08/15/75352-flutter-in-talks-to-acquire-playtechs-snaitech-in-deal-worth-about-25-billion
