Playtech plc (PTEC.L), a prominent gambling software development firm, announced on Tuesday that it has entered into a definitive agreement to sell Snaitech S.p.A. and certain associated units to Flutter Entertainment plc (FLUT, FLTR.L) for a total enterprise value of €2.30 billion in cash. Playtech also plans to return between €1.70 billion and €1.80 billion to its shareholders through a special dividend.
Snaitech, an Italian business-to-consumer sports betting and gaming company, will be acquired by Flutter's subsidiary, Flutter Entertainment Holdings Ireland Limited. The transaction values Playtech's shares at £6.27 each, reflecting a 16.5% premium over Playtech's recent share price of £5.38.
The sale is anticipated to be finalized by the second quarter of fiscal 2025, pending approvals from relevant antitrust, gaming, and other regulatory authorities.
Playtech Group originally purchased Snaitech in 2018 for an enterprise value of €846 million. Since then, Snaitech's adjusted EBITDA has grown from €139.3 million in 2017 to €256.1 million in 2023. The company currently employs approximately 1,030 people across eight locations in Italy.
Post-sale, Playtech aims to concentrate on its technology-driven offerings in high-growth business-to-business gambling markets, implementing an accelerated growth strategy bolstered by a broad array of strategic ventures.
Additionally, Playtech intends to repay the outstanding €350 million on its bond that is due in March 2026.
As of this report, Playtech shares in London were trading at 769.83 pence, an increase of 2.23%.
