Flutter eyes £2bn acquisition of Playtech’s Snaitech in Italy

Flutter Entertainment, known for its ownership of Paddy Power, is nearing a significant acquisition of Playtech's consumer operations, specifically Snaitech, a major player in the Italian gambling market. This deal, valued at approximately £2 billion, could be finalized as early as Monday, according to sources. The acquisition aligns with Flutter's strategy to expand its international presence, particularly in the lucrative Italian market, following its recent shift to a primary stock market listing in New York. The potential sale of Snaitech would transform Playtech into a business-to-business software provider, as it would divest one of its most profitable consumer segments. Analysts suggest that this move may lead to further takeover bids for Playtech in the near future, reflecting ongoing corporate restructuring within the company. Playtech's shares saw a notable increase following the announcement of a separate agreement with Caliente, a Mexican firm, which may have bolstered investor confidence. Flutter's CEO, Peter Jackson, has been actively pursuing acquisitions to enhance the company's market position, with Snaitech being the latest target. Previously, Flutter acquired Sisal, another significant Italian gambling entity, although it remains uncertain if the two will be integrated. The ongoing negotiations highlight the competitive landscape of the gambling industry, where companies are increasingly seeking to consolidate and expand their operations. As Flutter moves forward with this acquisition, it underscores the dynamic nature of the gambling sector, characterized by rapid changes and strategic maneuvers. The outcome of this deal could have far-reaching implications for both Flutter and Playtech, shaping their future trajectories in the global market.