Flutter in Talks to Acquire Snaitech from Playtech

Flutter Entertainment, the owner of Paddy Power, is reportedly in negotiations to acquire the consumer arm of Playtech, specifically its Italian subsidiary Snaitech, in a deal potentially valued at around £2 billion. Sources indicate that discussions are at a stage where Playtech may soon be required to publicly acknowledge the talks, although a formal agreement is not expected until next month. Currently, Playtech's shares are trading at approximately 548p, giving the company a market capitalization of about £1.66 billion. If the acquisition proceeds, it would value Snaitech at a premium compared to Playtech's current market standing. Snaitech, which operates under the brand Snai, has demonstrated robust performance, with a 5% revenue increase to €946.6 million in the last financial year, solidifying its position as a leader in the Italian sports betting market. Should the deal be finalized, Playtech would transition into a pure-play business-to-business (B2B) company, likely attracting interest from other potential buyers. Playtech has experienced a series of corporate developments in recent years, including a rejected takeover bid from Aristocrat Entertainment in 2022. For Flutter, this acquisition aligns with its ongoing strategy to expand its international presence under the leadership of CEO Peter Jackson. The company has previously acquired Sisal, another significant Italian entity, although it remains uncertain if Snaitech will be integrated with Sisal post-acquisition.