Playtech put in a bid for Snaitech. According to the media report, Playtech will buy a little over 70 percent stake in Snaitech. The UK company believes it will help provide a revenue mix that will help in more regulated markets. The deal’s price tag is $1.05 billion. Playtech announced the deal in a filing early Thursday, April 12, 2018. The gambling company will need to make a takeover offer for the remaining shares of Snaitech once the initial offering is completed. The deal is set to conclude in the third quarter.
Snaitech has agreed to the deal according to iGaming sources. Part of the deal is for the company to be removed from the Milan Stock Exchange. They expect it to take most of the year, with the stock removal from Milan happening in the last quarter of 2018. The buy-out will require regulators to accept the agreement. Shareholders must also provide approval. Playtech will earn revenue that is 78 percent of the regulated market.
Playtech will fund the buy-out with cash resources, a new loan, and will deliver cost material that is about 10 million euros. Playtech’s move is going to gain them a good introduction to the Italian market. Snaitech has a good chunk of the market revenue, which has been making gains of late.
Italy is seeing high records of income from their online casinos. Playtech is wise to get into a leading market with business to a business concept that is already showing strength in the Italian sector. The UK Company says they will see the organic growth that will lead to new strategic options.
Snaitech’s Licensing Authority
Snaitech holds a license through the Italian Monopolies Authority. They can provide products and gaming services like horse race betting, sports betting, video lottery, mobile poker, online poker, virtual sports, bingo, casino games, pari-mutuel, and casino games.
The Snaitech retail-betting network currently has 1600 points of sale in Italy. The group operates 60,000 new slot and 10,000 video lotteries throughout Italy. Snaitech had a revenue of 890 million euro for 2017, with an EBITDA of 136 million euro. The acquisition deal is still a good outlook for Playtech who has been battling more regulatory markets, plus issues in operating in Asia.
Playtech had an 18 percent gain in revenue in 2017 due to a crackdown on Malaysian gambling. Playtech told everyone in February the company would diversity to gain better revenue numbers for 2018.