Playtech acquires Snaitech, entering the consumer sector.
Playtech, a British gaming company, is set to take over Snaitech, an Italian market leader, acquiring a majority stake worth $1 billion (€846 million). This move strengthens Playtech's presence in the end-user gaming market.
Till now, Playtech has primarily functioned as a provider of gaming technology, catering to business customers. On the other hand, Snaitech is a well-known name in Italian consumer gaming, boasting a substantial online portfolio comprising sports betting, casino games, lotteries, and poker games at www.snai.it. They also have over 1,600 land-based gaming points, with more than 60,000 gaming machines and 10,000 lottery terminals across Italy.
Currently, Playtech plans to secure approximately 70% of Snaitech's shares, which are traded on the Milan Stock Exchange. This acquisition will be finalized after reaching a deal with existing shareholders, as mentioned in a recent press release. Subsequently, an offer will be made for the remaining shares, aiming for a complete takeover in the final quarter of 2018. Playtech plans to finance this deal through both equity and new loans.
Rising Potential in Underdeveloped Online Market
The merging of two leading companies in their respective sectors seems fitting. Playtech gains a foothold in the retail gaming business. Snaitech, in return, gains access to Playtech's diverse digital offerings, including over 600 casino games. The Italian online gaming market is perceived as underdeveloped, but the market potential for casinos has been highlighted, compared to the more robust sports betting segment.
Mor Weizer, CEO of Playtech, commented on the acquisition, stating:
"This takeover aligns with our strategy of investing in prominent retail brands in growth markets. This acquisition aligns with the Board's goal of improving the quality and variety of our revenues."
Provided that the acquisition receives regulatory and shareholder approval, Playtech's business position will look promising. With the deal, the company will generate approximately 78% of its revenues from regulated markets, becoming better equipped to handle potential issues in gray markets, such as Germany.
Snaitech's management will continue to operate within the group after the takeover, according to Playtech's announcement. CEO of Snaitech, Fabio Schiavolin, points out the advantages:
"This acquisition showcases Snaitech's prominence as a leading brand in Italy and adds value to our shareholders. The combination of Playtech's inventive technology with Snaitech's powerful brand enables us to target Italy's dynamic, rapidly growing online market more effectively."
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Source: www.onlinecasinosdeutschland.com
