Flutter Eyes £2bn Deal for Playtech’s Italian Arm

Gambling giant Flutter Entertainment (LON: FLTR) is in talks to acquire Snaitech, the consumer arm of London-listed Playtech, the companies confirmed on Wednesday.

A Sky News report first revealed the potential deal, saying it could be worth around £2 billion. It would see Flutter expand its presence in the Italian market. While the report said it was unclear how advanced the talks were, one of its sources told them they were “sufficiently detailed that Playtech would be required to publicly confirm them.”

In a brief press release Wednesday, Flutter confirmed it is in discussions to acquire Snaitech, but said that at this stage there is no certainty that it will proceed with an acquisition.

Meanwhile, in its own statement, Playtech said: “Playtech confirms it is in discussions with Flutter and has granted Flutter a period of exclusivity to complete due diligence and finalise the necessary Transaction documentation.”

Snaitech, a leading Italian gambling company which trades under the brandname Snai, has performed strongly, with revenues growing 5% to €946.6 million in the last financial year.

For Flutter, this acquisition would complement its existing Italian business, Sisal, and solidify its position in the country.

If the deal proceeds, Playtech would become a pure-play B2B company, focusing solely on technology solutions for the gambling industry. This could potentially attract further interest from other buyers.

The proposed acquisition comes amid a flurry of activity in the gambling sector. Both Flutter and its rival, Entain, have recently reported strong financial results. This deal highlights the ongoing consolidation in the industry over the last few years as companies seek to expand their market share and capitalise on growth opportunities.