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Flutter Entertainment PLC (LSE:FLTR), the owner of FanDuel and Paddy Power, has announced an agreement to acquire Playtech PLC's (LSE:PTEC) Italian gaming business, Snaitech, for €2.3 billion (£1.9 billion). This acquisition follows confirmation last month that discussions were in progress between the two companies.
Playtech, listed on the FTSE 250, has stated that it plans to distribute between €1.7 billion and €1.8 billion to shareholders through a special dividend following the completion of the transaction. Additionally, Playtech will use the proceeds to repay €350 million of outstanding bonds.
Snaitech, operating under the Snai brand, is a prominent player in the Italian gaming market, holding a 9.9% market share. The company reported a 5% increase in revenues, reaching €946.6 million in the most recent financial year.
Peter Jackson, CEO of Flutter Entertainment, commented on the acquisition, highlighting its strategic and financial benefits. Jackson emphasized that acquiring Snaitech aligns with Flutter's strategy for value-enhancing mergers and acquisitions and provides significant growth opportunities. He noted that Snaitech would gain access to Flutter's leading products and capabilities, both in the US and internationally. Jackson expressed eagerness to integrate the Snaitech team into Flutter and to leverage the combined strengths of both organizations.
Mor Weizer, CEO of Playtech, acknowledged the importance of Snaitech to Playtech’s growth in recent years. He remarked that the transaction represents a valuable opportunity for Playtech shareholders to benefit from the sale while also retaining the potential for further upside through ongoing ownership of its leading B2B operations. Weizer emphasized that Playtech’s advanced technology and market presence, particularly in the Americas and Europe, position the company well for future growth. He expressed enthusiasm about the future opportunities and the strong platform for development that lies ahead.
The transaction reflects Flutter’s strategic expansion into the Italian market and Playtech’s focus on maximizing shareholder value while continuing to grow its core B2B business.
