Playtech Confirms Discussions with Flutter Over £2bn Snaitech Sale
Playtech has confirmed that it’s in advanced negotiations with Flutter Entertainment over the potential sale of its Italian subsidiary, Snaitech. The deal is valued at a striking £2bn (€2.3bn/$2.6bn). This news has stirred curiosity and speculation across the iGaming industry, as stakeholders closely watch how these discussions unfold.
Key Takeaways
- The deal under discussion is valued at approximately £2bn (€2.3bn/$2.6bn).
- Flutter is currently carrying out due diligence on Snaitech.
- A period of exclusivity has been granted to finalize transaction details.
- Snaitech has shown strong performance, especially in Italy.
- Flutter had previously acquired Sisal, another Italian operator, for €1.9bn in August 2022.
Snaitech: A Golden Asset
On Wednesday morning (14 August), it was revealed by Sky News that Flutter was in talks to acquire Playtech’s Italian business Snaitech. With a hefty price tag of £2bn, this acquisition could mark a significant shift in the European gaming landscape. Playtech has confirmed these discussions, emphasizing that due diligence is actively underway, given a period of exclusivity to iron out the required transaction documentation.
The Journey of Snaitech
Initially, there were rumors swirling about Playtech’s intent to sell Snaitech back in 2022. However, when Snaitech’s revenue tripled in the first half of that year, the company decided to shelve plans for any sale. 2023 saw Snaitech gaining even more traction, with a significant year-on-year revenue boost of 5.2%, hitting €946.6m. This confirms Snaitech’s standing as a leader by market share in Italy’s competitive gaming sector.
“Snaitech has continued to perform well, leading in Italy by market share.”
Flutter’s Strategic Moves
Flutter Entertainment’s interest in Snaitech is not their first major move into the Italian market. Just in August 2022, Flutter acquired Sisal, an Italian online gaming and lottery operator, for €1.9bn. This places Flutter in an advantageous position to further consolidate their footprint in Italy should the Snaitech deal go through.
A Potential Industry Game-Changer
Later on Wednesday, Flutter issued a public statement acknowledging the ongoing talks. Nonetheless, both Flutter and Playtech have stated that there is no certainty that the acquisition will proceed. Given the scale of this potential deal, it undoubtedly represents a seismic event in the industry. Many analysts predict that if successful, the acquisition could set new standards for market consolidation in the iGaming space.
Hot Take: To Buy or Not to Buy
As we await further details, there is palpable excitement and a touch of skepticism in the air. While the numbers make a compelling case, the finalization of this deal could hinge on various regulatory and market factors. The integration of Snaitech under Flutter’s umbrella may offer unique synergies but could also come with unexpected challenges. Either way, the proposed animation has already sparked significant interest and debate in iGaming circles.
Stay tuned to iGamingNews.net for ongoing coverage and expert analysis on this evolving story.
