Flutter Entertainment Acquires Playtech’s Snaitech For $2.6B

Flutter Entertainment has reached an agreement with Playtech to add Snaitech, an Italian gambling company, to its portfolio in a deal valued at €2.3 billion ($2.6 billion).

Playtech acquired Snaitech for only €846 million in 2018

Playtech acquired Snaitech for only €846 million in 2018. The price of the transaction nearly matches Playtech’s market value of $3 billion based on its closing price in London on Monday, according to Forbes.

In May, Flutter Entertainment switched its primary listing from London to New York to gain access to deeper capital markets.

“While Snaitech has been an important part of the Playtech Group’s growth in recent years, the board agreed that this transaction represents a compelling opportunity to maximize value for our shareholders while also allowing them to share in further upside from continued ownership of a leading B2B business,” Playtech’s CEO Mor Weizer said in a filing on Tuesday.

Playtech also said it would distribute up to €1.8 billion euros to shareholders through a special dividend. Founded in 1999, Playtech will now mostly operate as a software provider to other gambling companies.

Flutter Entertainment reached an agreement with Playtech after deciding to invest in international markets

Flutter Entertainment, the parent company of FanDuel and other gaming and gambling brands, said Tuesday that the acquisition was in line with its strategy to invest in international markets. The deal is expected to be complete by the second quarter of next year.

Furthermore, Flutter expects the deal to boost its earnings immediately. Snaitech will help give the sports betting and iGaming giant about a 30% share of the market in Italy.

“This transaction is compelling strategically and financially. It fits perfectly within our strategy for value creating M&A and creates a significant opportunity to accelerate Snai’s growth by providing them with access to Flutter’s market leading products and capabilities both in the U.S. and globally,” Flutter’s CEO Peter Jackson said.

Additionally, Flutter announced a few days ago that it was buying a 56% stake in NSX Group for $350 million. NSX Group, the operator of Brazilian gaming group Betnacional, is Brazil’s fourth-largest online gambling operator.

Flutter also owns Betfair, Paddy Power, and PokerStars. The parent company has been expanding its international portfolio in recent years by acquiring businesses in countries like Canada, Georgia, Italy, India, and Italy.