UK-based gambling software company Playtech and Flutter Entertainment have confirmed they are currently in negotiations over the sale of Playtech's Italian consumer arm, Snaitech. A formal agreement may be reached by next month, though both parties have acknowledged there is no guarantee the deal will go ahead.
The acquisition, valued at around £2 billion ($2.6 billion), would solidify Flutter’s presence in the Italian gambling market and leave Playtech as a sole B2B operation.
Playtech has granted Flutter a period of exclusivity to complete its due diligence checks before finalizing the required documentation for the sale.
Rumored to sell in 2022
The rumors about Playtech potentially auctioning off Snaitech first circulated in 2022, four years after Playtech acquired its 70.6% majority share for $995.5 million. The company later acquired a further 9% through various market purchases.
The acquisition plans were halted after Snaitech’s revenue almost tripled to €446 million ($489.8 million) in H1. Playtech’s overall revenue that year was €792.3 million ($870.1 million).
Australian content creation company Aristocrat Entertainment attempted to offer a takeover bid, but it was rejected by Playtech’s shareholders. A year later, Playtech reportedly approached 888 (now listed as evoke) about a potential combination, but this fell through.
Whether or not the Flutter acquisition goes ahead, the discussion of the acquisition itself has had an impact on Playtech’s shares. On Wednesday morning, Playtech shares were valued at around 548 pence, the company’s total market value sitting at around £1.66 billion ($2.13 billion). After news broke of the potential acquisition, Playtech shares rose to 639 pence. Its current market value is around £1.97 billion ($2.53 billion).
Flutter’s Italian presence
Despite recently relocating its primary listing from London to the New York Stock Exchange, the acquisition of Snaitech will focus on expanding Flutter Entertainment’s presence in a key European market.
Flutter first established its Italian presence in 2022 after acquiring the Italian online gaming operator Sisal for £1.62 billion ($2.07 billion). The acquisition, according to Flutter’s CEO Peter Jackson, allowed Flutter to “attain a gold medal position in the Italian market.” Sisal is Italy's oldest gaming operator, and like Snaitech, it is headquartered in Milan.
In its most recent financial report for Q2 2024, Flutter Entertainment reported $3.6 billion in revenue, up 20% year-over-year. This growth was fueled by the success of its U.S. brand, FanDuel, which contributed $1.53 billion in profits. The company also emphasized its commitment to reinvesting some of this revenue to fuel further global expansion.
Rumors have also recently emerged that Flutter is also eyeing a potential acquisition of PENN Entertainment, which led to a 5% rise in Flutter's stock.
Founded in 1990, Milan-based Snaitech is currently the leading gambling operator in Italy by market share. In 2023, Snaitech reported €946.6m ($1.04 billion) in revenue, a 5.2% increase on the year before. The company manages sports betting and horse racing, operates gaming machines, and owns race tracks in Tuscany and Milan.
