Playtech makes biggest acquisition to date with Snaitech purchase
Playtech plc has announced its biggest acquisition to date after agreeing terms with Italy’s leading gambling operator, Snaitech.
Playtech has agreed terms with the Milan-listed Italian gambling operator, Snaitech, to purchase 70.6% of the operator for £733m.
The purchase of Snaitech has been made from two Italian private equity funds, Global Games and OI GAmes.
The deal requires the approval of regulators and shareholders, upon which Playtech will then purchase the remaining shares before the end of the year.
With the purchase, Playtech aims to diversify and upgrade its revenue mix. The company drew almost 80% of 2017’s revenues from regulated markets, while the ever-growing Italian market is the second largest in Europe.
Italy features over 1,600 Snai physical betting outlets, along with over 270,000 active online players.
Commenting on the acquisition, the CEO of Snaitech, Fabio Schiavolin, said:
This acquisition reflects Snaitech’s position as one of the leading and best known brands in Italy and delivers meaningful value to our shareholders. The combination of Playtech’s technology and experience in Italy with Snaitech’s powerful brand mean we will be better able to capture the online opportunity in the fast growing and dynamic Italian market.– Fabio Schiavolin, Snaitech CEO
Shares recovering after 2017 profit warning
The acquisition comes after a below market expectations performance in 2017.
In November 2017, shares in Playtech dropped by 22% as the company shared the news that its full-year performance would be below market expectations, due largely to crackdowns on gambling in parts of Asia.
Revenues from regulated markets will be an even stronger focus for the group this year and this acquisition should help to achieve those aims. Commenting on the deal, Mor Weizer, chief executive officer at Playtech, said:
The acquisition of Snaitech represents the continuation of our strategy to invest in leading retail brands in fast growing, regulated markets. The acquisition delivers the Board’s strategic objective to improve the quality and diversification of Group revenue, whilst delivering exposure to high growth end markets, by utilising the strength of Playtech’s balance sheet. Playtech has always been at the forefront of its industry and the acquisition offers the opportunity to create a vertically integrated B2B2C operator in Europe’s largest gambling market, delivering significant value to shareholders.– Mor Weizer, Playtech chief executive officer