Playtech To Sell Snaitech To Flutter For EUR 2.30 Bln Cash; To Pay Special Dividend

(RTTNews) - Playtech plc (PTEC.L), a gambling software development company, announced Tuesday that it has entered into a definitive agreement for the sale of Snaitech S.p.A. and certain of its units to Flutter Entertainment plc (FLUT, FLTR.L) for a total enterprise value of 2.30 billion euros in cash. Playtech also intends to return 1.70 billion euros to 1.80 billion euros to shareholders by way of a special dividend.

Snaitech, an Italian B2C sports betting and gaming company, will be bought by Flutter's unit Flutter Entertainment Holdings Ireland Limited. The transaction represents 6.27 pounds per Playtech share, a premium of 16.5% to Playtech's undisturbed share price of 5.38 pounds on the Latest Practicable Date.

The sale is expected to complete by the second quarter of fiscal 2025, subject to relevant antitrust, gaming and other regulatory authority approvals.

Playtech Group acquired Snaitech in 2018 for an enterprise value of 846 million euros. Adjusted EBITDA has improved to 256.1 million euros in 2023 from 139.3 million euros in 2017. It employs approximately 1,030 people in 8 sites in Italy.

Following the deal closure, Playtech said it will focus on its technology-led offering in high-growth B2B gambling markets with an accelerated growth plan and an extensive portfolio of strategic ventures.

In addition, the company intends to repay the amounts outstanding on its bond due March 2026 of 350 million euros.

In London, Playtech shares were trading at 769.83 pence, up 2.23%.