Flutter Entertainment in Advanced Talks to Acquire Playtech’s Snaitech for £2 Billion
Published: August 14, 2024 | Author: Ron Clarke
Flutter Entertainment, the global gambling conglomerate, is reportedly in advanced discussions to acquire Snaitech, the Italian arm of Playtech, in a deal potentially valued at approximately £2 billion ($2.57 billion). This transaction, if completed, would significantly expand Flutter’s presence in the Italian market, further solidifying its international footprint.
According to sources familiar with the matter, Flutter has been granted a period of exclusivity by Playtech to conduct due diligence and finalize the transaction’s details. While talks are advanced, both companies have indicated that there is no certainty the deal will reach completion, with terms still under negotiation. A formal agreement is not expected until at least the next month.
Playtech confirmed the discussions in a brief statement following media speculation, emphasizing that there is no guarantee the potential sale of the Snaitech business will ultimately be finalized or agreed upon, and that the terms remain uncertain.
Should the acquisition proceed, it would mark a strategic pivot for Playtech, which would then transition to a pure B2B operation, shedding its B2C business. Such a move would likely position Playtech as an attractive target for other potential bidders, especially given its strong recent performance in the B2B sector, driven by expansion in the U.S. market.
Snaitech, a leading player in Italy’s gambling industry, has shown robust performance under Playtech’s ownership, with a 5% increase in revenues to €946.6 million in the last financial year. Acquiring Snaitech would build on Flutter’s existing Italian portfolio, which includes the 2022 acquisition of Sisal for €1.9 billion. A merger of Snaitech and Sisal under Flutter’s ownership would create a formidable entity in the Italian gambling landscape, combining the market’s second and third largest operators.
This potential acquisition is seen as part of Flutter’s broader strategy to expand its operations beyond its core markets of the U.S. and the U.K. The company, which also owns prominent brands like Paddy Power and FanDuel, recently reported strong Q2 earnings, including a 20% rise in revenue to $3.61 billion. Flutter’s CEO, Peter Jackson, has indicated that the company is prepared to go beyond its leverage targets to pursue strategic market expansions.
As the talks continue, industry observers are awaiting further developments. The potential deal, if realized, could reshape the competitive landscape of the European gambling industry, with significant implications for both Flutter and Playtech.
Neither Flutter nor Playtech provided further comment on the ongoing negotiations.
