Flutter Entertainment is a major player in the global gambling market, known for owning Paddy Power, and is currently in negotiations to acquire the consumer division of Playtech, Snaitech. This deal could be worth about 2 billion pounds and is part of Flutter's ambitious expansion strategy.
In-depth negotiations underway:
According to Sky News, discussions have reached a sufficiently advanced stage that an official announcement may be imminent, signaling a significant reshaping of the gambling industry dynamics.
Reports indicate that negotiations between Flutter and Playtech have progressed to the point where they need to be made public. Although the formal transaction may not be completed until next month at the earliest, the potential acquisition price suggests that Snaitech's valuation exceeds Playtech's current market value. As of Wednesday morning (August 14), Playtech's valuation was about 1.66 billion pounds, with a share price of approximately 548 pence.
Snaitech operates under the well-known Italian brand Snai, with revenues increasing by 5% last fiscal year, reaching 946.6 million euros, showing robust growth. This performance has solidified its leading position in the Italian sports betting market. Integrating Snaitech into Flutter's portfolio will transform Playtech into a business-to-business (B2B) focused entity, potentially attracting more investment interest.
This acquisition aligns with the ongoing corporate strategy led by Flutter Entertainment CEO Peter Jackson. The company recently moved its primary stock market to the United States, sparking debate about the attractiveness of the London Stock Market. This move is seen as part of a broader strategy to consolidate Flutter's position through selective global acquisitions.
Previously, Flutter expanded its share in the Italian market by acquiring another well-known gambling company, Sisal. Post-acquisition, the operational synergies between Sisal and Snaitech are still under strategic review, and the potential benefits of their integration have not been fully disclosed. Flutter's strong financial performance in the recent quarter fully reflects this ongoing integration, very similar to the positive financial performance of its competitor, Entain, which owns Ladbrokes.
Recent developments at Playtech:
In recent years, Playtech has been at the core of several high-profile corporate developments. In 2022, its shareholders rejected a takeover bid from Australian company Aristocrat Entertainment. Subsequently, Playtech considered merging with the troubled 888 Holdings (recently renamed Evoke), although these negotiations ultimately failed.
The acquisition of Snaitech by Flutter not only enhances Flutter's already impressive portfolio but also marks another significant chapter in the company's relentless pursuit of growth under Jackson's leadership. With a market value of nearly 26 billion pounds, Flutter is strategically positioning itself as a giant in the gambling industry. As negotiations progress, both Flutter and Playtech remain silent on the potential deal.
