LONDON: Playtech plc has entered into a definitive agreement for the sale of Snaitech S.p.A. and certain of its subsidiaries to Flutter Entertainment Holdings Ireland Limited for a total enterprise value of €2.3 billion in cash.

Snaitech is one of the leading Italian B2C sports betting and gaming companies in online and retail, and employs approximately 1,030 people in 8 sites in Italy.

Mor Weizer, Chief Executive Officer at Playtech, said: “Under the Playtech Group’s ownership, Snaitech has grown into a high-quality business with a leading position in the Italian sports betting and gaming market.

The business has an experienced and high-performing management team that has fully embraced the post-lockdown shift to omni-channel in Italy. Today, Snaitech has an established retail presence and online business that are both well-placed to continue their success in one of the most attractive markets in Europe.

“While Snaitech has been an important part of the Playtech Group’s growth in recent years, the Board agreed that this transaction represents a compelling opportunity to maximise value for our shareholders while also allowing them to share in further upside from continued ownership of a leading B2B business.

The combination of the Playtech Group’s leading technology with its exposure to attractive markets, including in the Americas and Europe, provides a strong platform for growth in the medium-term. We are excited about what the future holds and the many opportunities ahead of us.

“In Flutter, Snaitech will have a new owner with an existing presence in Italy and all of the opportunities that brings. I’m confident that Snaitech will continue to excel under their ownership.”

The Playtech Group acquired Snaitech in 2018 for an enterprise value of EUR€846 million. Under the Playtech Group’s ownership, Snaitech has accelerated its online market share and enhanced its B2C retail offering. The Target Group’s adjusted EBITDA has improved from EUR€139.3 million in the year to 31 December 2017 to EUR€256.1 million in the latest reported year to 31 December 2023

The transaction provides a large value creation event for shareholders following the fundamental business model transformation achieved since acquiring Snaitech in 2018.

Opportunity for significant further upside from the Playtech Group’s renewed focus, post-transaction, as a leading global gaming business operating in high-growth B2B gambling markets.

Following the repayment of the 2019 Notes (€350 million), the Playtech Group will have a strong financial footing from which to execute an accelerated growth plan.

The simplified business model and focused B2B strategy will allow the Playtech Group to improve its market leading technology, positioning it to further grow its customer base and expand its share of wallet with existing customers

The Board considers the transaction to be in the best interests of the Playtech Group’s security holders as a whole given the large amount of value being realised in the transaction and the opportunity it provides to return a very significant amount of cash to the Playtech Group’s shareholders.