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Playtech places EUR 846mn on Snaitech stake
Posted on Thursday, 12 April 2018 12:34
UK gambling company Playtech has agreed to acquire a 70.6 per cent stake in Italian betting firm Snaitech for EUR 846.00 million in cash and new debt.
The deal, which creates the first vertically integrated gaming operator with material earning accretion, is subject to certain regulatory and shareholder approvals and is expected to occur in Q3 2018.
In addition, upon closing of the initial acquisition, Playtech has a plan to make a mandatory takeover offer for all of the remaining stocks in Snaitech, with a full takeover slated to complete in the fourth quarter of 2018.
The deal will establish a retail and online Italian gaming business that will control its own technology across all products and verticals from stores to website-based gambling.
Playtech will gain Snaitech’s leading market position in the industry, as well as a company that generated EUR 890.00 million in revenue and EUR 136.00 million in earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2017.
The purchase is expected to result in annual cost synergies of EUR 10.00 million, as well as boosting turnover, resulting in an enlarged group net debt leverage of below 1.5x EBITDA.
Mor Weizer, chief executive of Playtech, said: “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.”
In addition, Fabio Schiavolin, his counterpart at the target, said: “This acquisition reflects Snaitech's position as one of the leading and best-known brands in Italy and delivers meaningful value to our shareholders.
“The combination of Playtech's technology and experience in Italy with Snaitech's powerful brand mean we will be better able to capture the online opportunity in the fast growing and dynamic Italian market.”
Reuters observed that this is a positive path for the buyer which started the year with a holdup in its gaming revenue after a halt to gambling syndicates in Malaysia, one of its largest Asian markets.
Milan-based Snaitech has over 1,600 betting points in Italy, offering a portfolio of services in sports, horse-race, casino and online gaming.
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