Playtech to Buy Italian Snaitech in $1B Deal
Published April 12, 2018 by Ivan P
The acquisition will give Playtech an opportunity to further establish its position in the regulated markets, combining their technology and know-how with the strength of Snaitech brand in Italy.
Playtech, a UK-based company focused on developing casino games and full casino solutions, has made a big announcement about acquiring a majority share of 70.6% in Snaitech for €846 million (around $1.05 billion). The deal was reached with OI Games and Global Games, with these two companies giving up their shares in Snaitech and signing them over to Playtech. Pending the successful completion of this deal, Playtech is expected to make the mandatory takeover offer for the remainder of the company shares.
Improving Regulated Markets Revenue
The acquisition is an important strategic for Playtech as it represents the continuation of the company's strategy of investing in strong brands in regulated markets with fast growing tendencies. According to Playtech's CEO Mor Weizer, the purchase of Snaitech will enable the company to further diversify its revenue sources whilst giving them much bigger exposure on another fast-growing, regulated market.
Snaitech fits right in with the Playtech strategy as the company generated revenue of €890 million in 2017, with their EBITDA for the last year standing at €136 million. As such, this strong company will be a valuable addition to the Playtech long-term agenda.
Valuable Deal for Both Parties
Playtech isn't the only one that will come out on top in this acquisition. According to Snaitech's CEO Fabio Schiavolin, the deal is a clear indicator of the company's strong position in the market and it will add clear value for the shareholders.
Schiavolin expects that the combination of Playtech's advanced technology and experience and the power of Snaitech brand in Italy will create new opportunities in the market. Therefore, the Italian company is excited about their future within this new partnership.
The market seems to support these expectations, as Snaitech shares went up 15% after the deal was announced, while Playtech went up 8.3%. The acquisition deal should be finalized by the fourth quarter of 2018, pending approvals from the shareholders and relevant regulatory authorities.
