Playtech makes B2C play with €846m Snaitech acquisition
CEO Mor Weizer says the deal for the Italian operator will help “improve the quality and diversification” of Playtech’s revenue mix
Playtech has announced a deal to acquire Italian multi-channel operator Snaitech for €846m as part of a major play for regulated revenues in the B2C space for the supplier.
The deal will see Playtech acquire an initial 70.6% stake in the Italian gambling giant from Global Games and OI Games, before making a Mandatory Takeover Offer for the remaining 29.4% by Q4 2018.
According to the London-listed supplier, the transaction will significantly enhance the company’s regulated revenues, with 78% of the enlarged group’s 2017 pro-forma revenues coming from regulated markets.
The bid for additional regulated revenues comes just months after Playtech’s share price plummeted after what it described as a “recent slowdown in certain parts of Asia due to recent changing market conditions”
Commenting on the Snaitech deal, Mor Weizer, chief executive officer of Playtech, said: “The acquisition of Snaitech represents the continuation of our strategy to invest in leading retail brands in fast growing, regulated markets.”
He added: “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.
“Playtech has always been at the forefront of its industry and the acquisition offers the opportunity to create a vertically integrated B2B2C operator in Europe’s largest gambling market, delivering significant value to shareholders.”
The deal values Snaitech at €846m, with an implied EV/EBITDA of 6.2x, and is expected to deliver annual cost synergies of €10m and revenue synergies.
Last year, Snaitech generated revenue and EBITDA of €890m, and has an extensive retail footprint with more than 1,600 betting points of sales, as well as more than 270,000 active players online.
Fabio Schiavolin, CEO of Snaitech, 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.”
Playtech’s share price was 761.4p on the London Stock Exchange at the time of writing.