Playtech agrees €846m Snaitech deal
Playtech has agreed a deal to acquire a majority stake in Italian gaming and betting giant Snaitech with a view to a full takeover.
The agreement, brokered with certain shareholders of Snaitech, is worth €846m ($1bn) and will be funded by cash and new debt.
Playtech would acquire an initial 70.6% of the issued share capital of Snaitech.
Upon completion of the initial acquisition, Playtech will be required to make a mandatory takeover offer for all remaining shares in Snaitech.
In a statement, Playtech said the deal will create the “first vertically integrated gaming operator with material earnings accretion”.
Playtech expects to obtain shareholder and regulatory approval for the deal in the third quarter and said the overall transaction should go through in the fourth quarter.
Mor Weizer, chief executive of Playtech, said: “The acquisition of Snaitech represents the continuation of our strategy to invest in leading retail brands in fast growing, regulated markets.
“The acquisition delivers the board’s strategic objective to improve the quality and diversification of group revenue, whilst delivering exposure to high growth end markets, by utilising the strength of Playtech's balance sheet.
“Playtech has always been at the forefront of its industry and the acquisition offers the opportunity to create a vertically integrated B2B2C operator in Europe's largest gambling market, delivering significant value to shareholders."
Fabio Schiavolin, chief executive of Snaitech, added: “This acquisition reflects Snaitech’s position as one of the leading and best known brands in Italy and delivers meaningful value to our shareholders.
“The combination of Playtech’s technology and experience in Italy with Snaitech’s powerful brand mean we will be better able to capture the online opportunity in the fast growing and dynamic Italian market.”
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