According to Sky News, Playtech is in negotiations with Flutter Entertainment regarding the sale of its Italian brand Snaitech.
The deal is expected to reach a formal agreement by next month at the earliest, and it is reportedly valued at approximately 2 billion pounds (2.57 billion USD).
Previously, Flutter had announced robust performance in its second quarter report, including a 20% revenue increase to 3.61 billion USD, a rise in share prices, and indicated openness to acquisitions in future calls.
Subsequently, Playtech issued a response to media speculation, confirming the discussions: "Playtech has noted recent media speculation that it is in talks with Flutter Entertainment plc ('Flutter') on a possible sale of the Snaitech business, a deal which could be valued at approximately 2 billion pounds ('Transaction')."
"Playtech confirms it is in discussions with Flutter and has granted Flutter an exclusive period to complete due diligence and finalize necessary transaction documents."
"It remains uncertain whether any transaction regarding the potential sale of the Snaitech business will ultimately be agreed upon, or if its terms are accurate. Further announcements will be made as appropriate."
Flutter also responded to Playtech's statement, saying: "Flutter Entertainment plc ('Flutter') (NYSE: FLUT; LSE: FLTR) notes that Playtech plc ('Playtech') has announced a possible sale of its Snaitech business to Flutter, and confirms that discussions are ongoing."
"At the moment, it is not certain if Flutter will proceed with the acquisition. Flutter will provide updates when appropriate."
In the latest issue of Gambling Insider GI Friday, we speculated that Playtech had been a 'sleeping giant,' but is now a thriving company, whose partnerships with major corporations are worthy of investor attention. Given the anticipated scale of this transaction, this sentiment is supported as it underlines the value of the Playtech brand; considering that only until 2022 did Playtech advise shareholders to support the acquisition by Aristocrat.
If the transaction succeeds, Playtech will once again become a purely B2B provider.
