Playtech Responds to Media Speculation and Confirms Flutter Acquisition Discussion

Article by : Milena Petrovska Aug 21, 2024

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Playtech has published a response to the media speculation regarding Flutter’s possible acquisition of Snaitech in which it confirms that it was in “discussions with Flutter.” The response, which was published on August 14, also noted that Playtech had given Flutter a period of exclusivity to complete their diligence and finish all the paperwork regarding the transaction.

Estimated Sale Sits at Whopping £2 Billion

Even though the discussions are ongoing, Playtech noted that there was still no agreement on whether the £2 billion deal would go through. Playtech ended the media response by saying that “further announcements will be made as and when appropriate.”

After the news of the potential sale of Snaitech became public, Playtech’s shares jumped as high as 22%, and Flutter’s shares went up by 10%.

Snaitech is currently one of the biggest gambling operators in Italy. Playtech purchased the brand back in 2018 after receiving the green light from Italy’s authorities. In the 2023 financial report, Snaitech reported €946.6 million ($1.05 billion) in revenue, which was a 5% increase from the previous year.

Statista reported that Snaitech had a 13% share in Italy’s online gambling market at the end of 2023. Lottomatica had a 21% share of the market and Sisal had a 15% share of the market.

Sisal is Also Owned by Flutter

The main reason why Flutter is looking to purchase Snaitech is to increase its market presence in Italy. Currently, the company owns Sisal and by purchasing Snaitech, the company’s market share in the country can go as high as 30%.

Sisal was purchased by Flutter back in 2022 for a price of €1.9 billion ($2.09 billion). The company’s strategy is to increase its presence outside of the US and the UK. In the US, Flutter owns one of the biggest online gambling brands – FanDuel. In the UK, Flutter owns the likes of Betfair and Paddy Power. At the moment, Flutter operates in over 20 countries around the world

Recently, Flutter also announced two new appointments to its board of directors. Christine M. McCarthy was appointed to the audit committee and Robert R. Bennett was appointed as a member of the risk and sustainability committee.

Snaitech Isn’t The Only Brand that Flutter is Willing To Purchase

Flutter is currently on a major mission to increase its digital gambling footprint. Apart from the talks to acquire Snaitech, the gambling company is also rumored to take over Penn Entertainment. According to media outlets, Flutter is likely to join Boyd Gaming.

Back in June 2024, Reuters reported that Boyd Gaming expressed interest in purchasing Penn. Reuters also noted that people who are familiar with the matter said that the potential acquisition offer was $9 billion.

The alleged interest came after Penn’s investors weren’t satisfied with its strategy. Donerail Group, one of the investors, even penned an open letter in which it emphasized the need for a strategic shift and even noted that selling the business might unlock value for its investors. After the rumors of the possible acquisition broke through, Penn’s shares went up by 20%.