Flutter Entertainment, the owner of Paddy Power, is currently in talks to purchase the consumer arm of London-listed Playtech in a potential deal worth approximately £2bn.
According to sources, Flutter Entertainment is in discussions to acquire Snaitech, one of Italy’s largest gambling companies. These talks are said to be at an advanced stage, prompting speculation that Playtech may be required to publicly confirm them. However, a formal agreement is not expected to be reached until at least next month.
If the deal is completed, it would see Snaitech being valued at a premium compared to Playtech’s current market capitalisation. Playtech, known for its significant business-to-business gambling technology division, currently has a market value of approximately £1.66bn, with shares trading at 548p on Wednesday morning.
Snaitech, which operates under the brand Snai, reported a 5% increase in revenue to €946.6m in the last financial year and remains the leading sports betting brand in Italy. A sale to Flutter would leave Playtech as a pure-play B2B company, potentially attracting interest from other potential buyers.
Led by Mor Weiser, Playtech has recently seen strong financial results due to its expansion in the US B2B market and the impressive performance of Snaitech. However, the company has been involved in various takeover and corporate dramas over the years. In 2022, a takeover bid from Australian peer Aristocrat Entertainment was rejected by Playtech shareholders. The following year, Playtech reportedly attempted to merge with London-listed 888 (now known as Evoke), but the deal fell through.
For Flutter, the potential acquisition of Snaitech is the latest step in CEO Peter Jackson’s ongoing corporate transformation. The company recently relocated its primary listing to the US, raising concerns about the attractiveness of the London stock market. Flutter has been expanding its international presence through acquisitions, with Snaitech being the latest major target for Mr Jackson. Flutter has also acquired Sisal, another significant Italian group, although it is unclear whether it will be merged with Snaitech.
On Tuesday, Flutter reported strong financial results for the second quarter, following a similar announcement from rival Entain (owner of Ladbrokes). Entain, which has recently appointed a new CEO, has also faced challenges in the market. Both Flutter and Playtech declined to comment on the ongoing talks.
