Playtech Confirms Talks of £2bn Flutter Bid for Snaitech

The leading supplier of software, content and solutions, powering iGaming and betting operators, Playtech, confirmed it is in talks for the potential sale of its business-to-customer (B2C) division in Italy, Snaitech, to the leading gaming and entertainment giant, Flutter Entertainment.

Today, the company released a short letter titled “Response to Media Speculation,” acknowledging that it is indeed in talks to sell its Italian business division to Flutter. The company confirmed that under the transaction, Snaitech is valued at £2 billion ($2.57 billion).

The multi-billion-dollar price tag of the potential acquisition is above Playtech’s market value cap of approximately £1.66 billion ($2.13 billion) before the announcement. After the media outlet Sky News uncovered details regarding the potential sale of Snaitech, Playtech’s shares soared by approximately 20%.

Addressing the speculation, the company released the statement, informing its investors of the ongoing discussions with Flutter Entertainment. Playtech explained that it has granted Flutter “a period of exclusivity to complete due diligence and finalize the necessary Transaction documentation.”

Still, the company said that despite the talks, there is no certainty that the acquisition of Snaitech will be agreed on. Finally, Playtech vowed to disclose further details in due time.

“Playtech notes the recent media speculation that it is in discussions with Flutter Entertainment plc regarding the potential sale of the Snaitech business for a value that could be about £2 billion,“

reads a statement released by Playtech

The Acquisition Can Propel Flutter’s Presence in Italy

Data from Statista as of June 2024 reveals that Lottomatica holds a leadership role in the Italian online gambling market with approximately 30% market share. Next in line is Flutter-owned Sisal with 10.63% market share, followed by Snaitech, Playtech’s Italian business division, with 7.12%.

If indeed the acquisition of Snaitech is completed, Flutter will likely significantly expand its presence and market share in Italy, which is the second-largest gambling market on the Old Continent. Judging by the market share data from Statista, Flutter may solidify its position as the second-largest online gambling operator in the country. At the same time, such a transaction will widen the gap between the second and third-largest iGaming operators.

Initially, Snaitech was purchased by Playtech back in 2018 in a deal for nearly €850 million ($1.09 billion). Undoubtedly, this was a winning move, considering that the company’s Italian division reported close to €1 billion ($1.28 billion) in revenue for 2023. Snaitech’s 2023 full-year revenue result marked a solid increase of 5% when compared to 2022.