British gambling technology firm Playtech has agreed to sell its Italian business unit, Snaitech, to Flutter Entertainment, the world’s largest betting company, for EUR 2.3 billion (USD 2.56 billion).

An All-Cash Deal

Announced today, the companies have agreed to an all-cash deal expected to close in the second quarter of 2025. After the sale, Playtech will retain only its business-to-business (B2B) offerings as the company pursues “an accelerated growth plan and an extensive portfolio of strategic ventures.”

Playtech highlighted that the sale will unlock “significant capital,” maximising value for shareholders. The company plans to distribute dividends between EUR 1.7 billion and EUR 1.8 billion after the transaction. Additionally, Playtech will use part of the proceeds to repay EUR 350 million in bond issues due in March 2026.

“The final amount of the Shareholder Distribution will be determined with reference to the capital needs of the ongoing Playtech business,” the company said.

The Snaitech deal comes after Playtech and Flutter entered talks in August.

A Revenue-Generating Business

Playtech acquired Snaitech in 2018 for EUR 846 million, marking its entry into the business-to-consumer (B2C) gambling market. In fiscal 2023, Snaitech generated EUR 946.6 million, accounting for 55.4 percent of Playtech’s total revenue.

“Under the Playtech Group’s ownership, Snaitech has grown into a high-quality business with a leading position in the Italian sports betting and gaming market,” said Mor Weizer, CEO of Playtech.

“While Snaitech has been an important part of Playtech’s growth in recent years, the Board agreed that this transaction represents a compelling opportunity to maximise value for our shareholders while also allowing them to share in further upside from continued ownership of a leading B2B business. The combination of Playtech’s leading technology with its exposure to attractive markets, including in the Americas and Europe, provides a strong platform for growth in the medium term.”

Previously, Playtech sold its financial division, Finalto (formerly TradeTech), to Hong Kong-based Gopher Investments in 2022 for $250 million in cash. Although Playtech was open to takeover bids, those efforts did not materialise.

This article was written by Arnab Shome at www.financemagnates.com.

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