Playtech and Flutter Entertainment are discussing a potential sale of the Italian division Snaitech Italia.
Playtech released a brief statement following significant media speculation about the potential sale of its Italian business to Flutter.
The company noted that the discussions involve a “potential sale of Snaitech, with a value that could reach approximately £2 billion ($2.6 billion).”
Playtech has granted Flutter an exclusive period to complete due diligence and finalize the terms of the deal with investors.
The Playtech board has not yet approved any proposals from Flutter and emphasized that there is no certainty that a deal for the sale of Snaitech will be agreed upon or what its terms might be. The company stated that further announcements will be made as necessary.
On its part, Flutter noted that there are no guarantees at this stage regarding the continuation of the deal and promised to provide updated information as necessary.
The acquisition aligns with Flutter’s ambitions to expand its presence in the Italian market, strengthening its international division (beyond the US and UK), which in 2022 acquired the Italian lottery and retail betting giant SISAL for €1.9 billion ($2.09 billion).
The purchase of Snaitech would be a significant event for the Italian gaming industry, combining the second and third largest market players under Flutter International.
Recent Flutter reports for the second quarter showed international division revenue of $807 million (+11%) and EBITDA results of $156 million.
Discussing future plans, Flutter CEO Peter Jackson emphasized that the company is willing to exceed its target leverage ratios if necessary to successfully complete the deal and expand into new markets.
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