Playtech Acquires Italian Gaming Operator Snaitech
One of the leading software providers Playtech will acquire the Italian gaming operator Snaitech by the end of the year. This is the result of an agreement reached between Playtech and Snaitech shareholders Global Games and OI Games according to which Playtech is to acquire 70.6 per cent of shareholding in the business worth €846m (R12b). According to the agreement, this investment will be followed by a mandatory takeover offer for the remaining shares.
“The acquisition of Snaitech represents the continuation of our strategy to invest in leading retail brands in fast growing, regulated markets. 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,” said Playtech chief executive Mor Weizer.
The acquisition is expected to complete in the fourth quarter or this year and will be funded by a combination of existing cash resources and new debt facilities. It delivers the board’s strategic objective to improve the quality and diversification of group revenue. Besides, by utilising the strength of Playtech’s balance sheet, it should deliver them exposure to high growth end markets, the representatives of the company claim.
Snaitech chief executive Fabio Schiavolin said that the acquisition reflected the Snaitech’s position as one of the leading and best known brands in Italy and delivered meaningful value to their shareholders.
“The combination of Playtech’s technology and experience in Italy with Snaitech’s powerful brand means we will be better able to capture the online opportunity in the fast growing and dynamic Italian market. We are pleased to be joining the Playtech team and look to the future with confidence and excitement,” said Schiavolin.
The acquisition is expected to deliver annual cost synergies of €10m while Snaitech generated revenue of €889.6m in 2017 with EBITDA of €132.7m.
Snaitech is one of the leading gaming operators on the Italian gaming and betting market with its shares listed on the Milan Stock Exchange. It was founded when Snai Spa and the Cogemat group merged in late 2015. Today Snaitech has headquarters in Milan, Porcari (Lu) and Rome.
With its multichannel technology, the operator offers sport and horse racing betting, virtual sports, video lottery as well as online and mobile Poker, skill games, casino games and bingo. Their retail betting network called SNAI consists of over 1,600 points of sale throughout Italy.