British playing expertise agency Playtech has agreed to promote its Italian enterprise unit, Snaitech, to Flutter Leisure, the world’s largest betting firm, for EUR 2.3 billion (USD 2.56 billion).
An All-Money Deal
Introduced immediately, the businesses have agreed to an all-cash deal anticipated to shut within the second quarter of 2025. After the sale, Playtech will retain solely its business-to-business (B2B) choices as the corporate pursues “an accelerated progress plan and an intensive portfolio of strategic ventures.”
Playtech highlighted that the sale will unlock “vital capital,” maximising worth for shareholders. The corporate plans to distribute dividends between EUR 1.7 billion and EUR 1.8 billion after the transaction. Moreover, Playtech will use a part of the proceeds to repay EUR 350 million in bond points due in March 2026.
“The ultimate quantity of the Shareholder Distribution might be decided on the subject of the capital wants of the continuing Playtech enterprise,” the corporate mentioned.
The Snaitech deal comes after Playtech and Flutter entered talks in August.
A Income-Producing Enterprise
Playtech acquired Snaitech in 2018 for EUR 846 million, marking its entry into the business-to-consumer (B2C) playing market. In fiscal 2023, Snaitech generated EUR 946.6 million, accounting for 55.4 % of Playtech’s whole income.
“Below the Playtech Group’s possession, Snaitech has grown right into a high-quality enterprise with a number one place within the Italian sports activities betting and gaming market,” mentioned Mor Weizer, CEO of Playtech.
“Whereas Snaitech has been an vital a part of Playtech’s progress lately, the Board agreed that this transaction represents a compelling alternative to maximise worth for our shareholders whereas additionally permitting them to share in additional upside from continued possession of a number one B2B enterprise. The mixture of Playtech’s main expertise with its publicity to engaging markets, together with within the Americas and Europe, offers a powerful platform for progress within the medium time period.”
Beforehand, Playtech bought its monetary division, Finalto (previously TradeTech), to Hong Kong-based Gopher Investments in 2022 for $250 million in money. Though Playtech was open to takeover bids, these efforts didn’t materialise.
This text was written by Arnab Shome at www.financemagnates.com.
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