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The Italian regulator, Agenzia delle Dogane e dei Monopoli, gave the green light to Playtech for buying the majority stake in Snaitech.
Gambling Software development company Playtech has agreed with Snaitech to purchase 70.6% their stake in April for €846 million.
The initial acquisition will be finished in June and Playtech will make a mandatory offer for the remaining Snaitech shares later on. The overall transaction is expected to be finalized later this year and the general meeting of Playtech shareholders is scheduled for 29, May to further discuss the deal.
Commenting on the transaction back in April, Playtech CEO Mor Weizer said this acquisition is looked upon as an opportunity to “improve quality and diversification” of the company’s revenue while “delivering exposure to high growth end markets” and at the same time putting the strength of Playtech’s balance sheet in use.
“The acquisition of Snaitech represents the continuation of our strategy to invest in leading retail brands in fast growing regulated markets.”
Playtech is investing in a profitable business with strong management and similar DNA. The acquisition will create a vertically integrated retail and online Italian gaming business that will control its own technology across all products and verticals.
Snaitech generated revenue of €890 million and EBIDTA of €136 million in 2017.Being listed on the Italian stock market, the company has the most extensive distributive network via franchises of +1,600,000 points and 270,000 active players. So the numbers really speak for themselves. This acquisition deal will enhance Playtech’s revenue mix towards regulated markets, diversify the geographical spread of these revenues and gain exposure to the biggest gambling market in Europe, larger than the UK by GGR.
Playtech acquiring Snaitech may be seen as way of boosting profits after the slowdown in Malaysia. Malaysian’s government measures infected the Playtech gaming division revenue since they were a lot lower than the previous year. The UK situation of drastically lowering the maximum betting odds for FOBT’s, is another gambling reform that can affect the revenue significantly. Therefore the company is exploring new M&A opportunities with complementary business in the B2B Gaming division.