Flutter eyes Playtech’s Snaitech in potential £2 billion deal

Flutter Entertainment is reportedly in talks to buy Playtech’s Italian business, Snaitech, in a deal that could be worth around £2 billion ($2.57 billion). The UK gambling tech firm stated that FanDuel owner Flutter was discussing acquiring Snaitech, which caused Playtech’s shares to jump 19 percent to their highest level since March 2022.

According to Sky News, a formal agreement will unlikely be reached until at least next month. Citing CEO Peter Jackson, Reuters reported that “there’s a long list of potential acquisition opportunities for Flutter to expand internationally.”

The news follows Flutter, who also owns betting firm Paddy Power, reporting strong numbers in its Q2 earnings report, including a 20 percent increase in revenue to $3.61 billion. The company’s share price also rose. During its conference call, Flutter mentioned that it is open to future acquisitions.

During a brief statement to investors, Playtech confirmed the claims, stating: “Playtech confirms it is in discussions with Flutter and has granted Flutter a period of exclusivity to complete due diligence and finalize the necessary transaction documentation.

“There can be no certainty that any transaction regarding the potential sale of the Snaitech business will ultimately be agreed, or as to its terms. Further announcements will be made as and when appropriate.”

iGamingBusiness suggests that in 2022, Playtech had reportedly considered a break-up of its business, including selling the Snaitech arm it acquired in 2018 for €846 million ($932 million) after plans to sell the entire business fell through.

However, shareholders rejected a £2.7 billion ($3.5 billion) acquisition attempt by Australian gaming provider Aristocrat in February 2022, with 55 percent voting in favor, below the minimum required 75 percent threshold.

In 2023, The Sunday Times reported that Playtech approached 888 Holdings, now known as evoke plc, to explore a potential merger valued at approximately £700 million ($898 million).

Meanwhile, Flutter is believed to have a market capitalization of almost £26 billion ($33 billion).

Featured image: Canva / Ideogram

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