Playtech has agreed to sell its Italian sports betting and gaming company, Snaitech, to Flutter Entertainment for a total consideration of 2.3 billion euros ($2.56 billion).
The deal represents a significant return for Playtech, which acquired Snaitech in 2018 for €846 million ($941.45 million).
Snaitech in numbers
The sale price of £6.27 ($8.28) per share represents a 16.5% premium to Playtech’s previous share price of £5.38 ($7.11). This corresponds to a return almost three times greater than Playtech‘s original investment.
Thus, the sale is valued at nine times Snaitech’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for 2023.
Snaitech is the third online operator in the Italian market, with a 9.9% share in 2023, and 291,000 average monthly players. Online revenue and adjusted EBITDA grew at a compound rate of 26% and 32%, respectively, in the four fiscal years through 2023.
Snaitech, under the ownership of Playtech, saw its adjusted EBITDA almost double from €136 million in 2017 to €256 million in 2023. Playtech helped Snaitech expand its online market share and strengthened its retail presence as a market leader Italian games.
Flutter plans and transaction impact
Playtech planned to return £1.7 to £1.8 billion to shareholders through a special dividend, which could range between £4.56 and £4.83 per share. A sum that exceeded Playtech’s share price at the beginning of 2024.
The sale would further help strengthen Playtech’s focus on its core B2B business in growth markets in the Americas and Europe.
Flutter already acquired NSX Group in Brazil, owner of Betnacional, last week and is now strengthening its presence in Italy, as it also owns the lottery company Sisal.
Playtech and Flutter share prices remained stable. But, as the announcement was made in the last 48 hours, it is still too early to know if this will change.
