Italy Approves Playtech’s take-over of Snaitech

The Italian gaming regulatory authority Agenzia delle Dogane e dei Monopoli has approved the UK-based gambling company Playtech’s acquisition of Snaitech, an Italy-based company that operates gaming machines, manages horse racing and sports concessions and is involved in online betting and gaming.  Playtech will acquire a 70.6 per cent stake in Snaitech for $1.05 billion. As per the acquisition deal, Playtech will make a mandatory takeover offer for the rest of the shares too.

The deal, which was originally announced last month, is subject to the approval of Playtech’s shareholders and will be discussed at a general meeting to be held next week.

Following the completion of the first stage, Playtech will be required to make a mandatory takeover offer for the remainder of the shares. Playtech estimates both parts of the deal will be completed later this year.

Originally founded in Israel, Playtech is the world’s largest provider of online gambling services. The company reported revenues of €421.6 million (around $497.5 million) for the first half of 2017. It employs around 5000 people in 17 countries worldwide, according to company data.

In November, following regulatory changes in its several markets, including the U.K., Playtech issued a profit warning, stating that it expects its full-year profits will be 5 per cent below the bottom end of market expectations.

In an April filing, Playtech said the deal with Snaitech would enhance its revenue mix towards regulated markets and establish its presence in Italy.

Milan-headquartered Snaitech operates gaming machines, manages horse racing and sports concessions and is involved in online betting and gaming activities. According to the filing, in 2017 Snaitech generated revenue of more than $1 billion (€890 million) and EBITDA of $168 million (€136 million).

In March, Playtech secured an exclusive contract to supply Poland’s national lottery provider Totalizator Sportowy with its online casino platform, game portfolio, and marketing and consulting services.

Source: CTech