Playtech has confirmed ongoing discussions with Flutter Entertainment regarding the potential sale of its Italian business, Snaitech. The talks have sparked significant interest, especially given the estimated value of the deal, which stands at £2 billion ($2.57 billion). This valuation surpasses Playtech’s market cap of approximately £1.66 billion ($2.13 billion) before the announcement.
In response to recent media speculation, Playtech issued a brief statement titled “Response to Media Speculation.” The company acknowledged that it is in talks with Flutter to sell its business-to-customer (B2C) division, Snaitech. Playtech also revealed that it has granted Flutter a period of exclusivity to conduct due diligence and finalize the transaction details. However, Playtech cautioned that there is no guarantee the deal will be finalized. The company promised to provide further updates as the situation develops.
The potential sale of Snaitech has significant implications for both companies. Flutter, which already owns Sisal, a major player in the Italian online gambling market, could substantially increase its market share in Italy if the acquisition goes through. According to Statista data from June 2024, Lottomatica leads the Italian online gambling market with a 30% share, followed by Flutter-owned Sisal with 10.63%, and Snaitech with 7.12%. Acquiring Snaitech would position Flutter as a dominant force in the Italian market, which is the second-largest gambling market in Europe.
Snaitech has been a valuable asset for Playtech since its acquisition in 2018 for nearly €850 million ($1.09 billion). The Italian division reported close to €1 billion ($1.28 billion) in revenue for 2023, marking a 5% increase from the previous year. This growth underscores the strategic importance of Snaitech within Playtech’s portfolio.
Playtech’s shares surged by approximately 20% following the news of the potential sale, highlighting investor interest in the outcome of these negotiations. As the talks continue, the market will be watching closely to see whether the two companies can reach an agreement.
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