Last updated: September 18, 2024
Playtech has sold its Italian gaming company, Snaitech, to Flutter Entertainment for €2.3bn, representing nearly a threefold return on investment since 2018. The deal allows Playtech to focus on its B2B business while strengthening Flutter’s presence in Italy. Playtech plans a significant shareholder return from the sale proceeds.
Flutter Entertainment has approved the offer to acquire Playtech’s Snaitech, an Italy-based sports betting and gaming firm valued at €2.3 billion or ($2. 56 billion).
The move is a staggering financial achievement for Playtech, which repurchased Snaitech in 2018 for €846 million ($941. 45 million). The share disposal agreement meant the share price had to be £6. 27 ($8. 28), showing an improvement by a statistically significant of 16. $5.05 cents or 5% more than Playtech’s previous share price of £5. 38 ($7. 11) has provided Playtech with almost triple the invested sum. The acquisition cost is nine Snaitech’s expected EBITDA for the year 2023 and reflects the firm’s sale price.
When Playtech acquired it, Snaitech’s adjusted EBITDA also boosted significantly, growing from €136 million in 2017 to €256 million in 2023. Playtech was also crucial in growing Snaitech’s online market share while at the same time boosting Snaitech’s retail market position in Italy, which therefore established the firm as a leading player in the region’s gaming market.
Since the divestiture of its Italian operations, Snaitech, to Flutter Entertainment, Playtech will be generating billions in dividends for its shareholders in the form of a special dividend. This payout is said to vary between £4. 56 to £4. 83 per share, which is much higher than the Playtech company’s stock price at the beginning of 2024.
The sale will help Playtech operate more focusedly, particularly in the Americas and European B2B markets.
To Flutter Entertainment, Snaitech fits well with the recent acquisition of NSX Group in Brazil and consolidates the company’s position in Italy, where Flutter has already acquired a lottery company, Sisal.
Currently, there has been a slight fluctuation in the company’s shares of both the Playtech and Flutter companies; however, this could still be attributed to the early days after the announcement.
