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Playtech Buys Snaitech In €846 Million Transaction
- April 17, 2018 By Riley Wilson -
One of the biggest brands in the gambling industry, Playtech has reached an agreement to buy the Italian bookmaker Snaitech.
Playtech will initially purchase 70.6% of the Snaitech shares, while this action will be followed by a mandatory takeover offer for all the remaining shares.
An Important Acquisition
Commenting on the latest move, Playtech Chief Executive Officer Mor Weizer said the acquisition of Snaitech represented the continuation of the strategy to invest in leading retail brands in fast-growing, regulated markets.
He added the acquisition delivered the Board’s strategic objective to improve the quality and diversification of the Group’s revenue, whilst delivering exposure to high growth end markets by utilizing the strength of Playtech’s balance sheet.
Weizer noted that Playtech had always been at the forefront of the industry and added the acquisition offered the opportunity to create a vertically integrated B2B2C operator in Europe’s largest gambling market, delivering significant value to shareholders.
Regarding the agreement signing, Chief Executive Officer of Snaitech Fabio Schiavolin pointed out that this purchase reflected Snaitech’s position as one of the leading and best-known brands in Italy and delivered meaningful value to its shareholders.
Combining Technology And Experience
Schiavolin added the combination of Playtech’s technology and experience in Italy with Snaitech’s powerful brand meant the two sides would be better able to capture the online opportunity in the fast-growing and dynamic Italian market.
He concluded by saying that Snaitech was pleased to be joining the Playtech team and added he was looking forward to the future with confidence and excitement.
The Italian bookmaker generated revenue of €890 million in 2017 with EBITDA of €136 million. The acquisition values Snaitech at €846 million, equivalent to an implied EV/EBITDA (pre-synergies) of 6.2x.
Playtech is certain the agreement will create a vertically integrated retail and online gaming business in the Italian market that will regulate its own technology regarding every product from land-based to online gambling activities.
This move once again proves that Playtech has a strategy to invest in highly lucrative businesses in well-regulated markets, and it is certain the mix of two big gambling brands will be a successful one since Playtech plans to keep its experienced management team post-acquisition.