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Playtech to buy Italy's Snaitech for 846m as it moves to regulated markets
Gambling technology company Playtech on Thursday said it had agreed to buy 70.6% of Italian betting and gaming outfit Snaitech from two major shareholders for 846m.
Playtech added that it would have to make a mandatory takeover offer for the remaining stake in Snaitech after completing the initial purchase. The two major shareholders were named as Global Games and OI Games.
The deal, will be funded by Playtech's existing cash and new debt. Snaitech generated revenue and core earnings of 890m and 136m respectively in 2017. Around 10m in cost savings are expected, although the amount of potential job losses was not specified.
Playtech said Snaitech has one of the largest gaming and betting machine networks in Italy with more than 1,600 betting points, approximately 54,000 gaming machines and 10,000 video lottery terminals.
It added said the deal would significantly enhances its revenue mix towards regulated markets, with 78% of the enlarged group's 2017 pro-forma revenues coming from this sector.
"The acquisition of Snaitech represents the continuation of our strategy to invest in leading retail brands in fast growing, regulated markets," said Playtech chief executive Mor Weizer.
"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."