Playtech To Acquire Italian Gambling Giant Snaitech

Published Sunday, April 15, 2018 - Online-Casinos.com
Playtech To Acquire Italian Gambling Giant Snaitech

Playtech has been in the online gambling business for some time now with its first casino product launch in 2001. Playtech has gone from a software supplier to many major online gambling operators to an operator itself. Acquisitions have been a key factor in the growth of the firm and the recent bid for Italy’s largest gambling company is a good example of the company’s strategy.

The deal allows Playtech to take control of the 1,600 Italian betting shops in Italy owned by Snaitech. The company is listed on the Milan Stock Exchange and is a leader in the Italian Gaming and Betting market. Snaitech was founded by the integration between Snai Spa and the Cogemat group of companies in late 2015, and it has headquarters in Milan, Porcari (Lu) and Rome.

The deal to acquire Snaitech by Playtech will witness Playtech purchasing 70.6 percent of Snaitech in two stages. Securing a majority stake in the Italian betting shops and software provider, Playtech will put up $358 million in the first stage. Playtech will close the first portion of the acquisition hopefully by the end of this year after which Playtech is obligated to buy the rest of the Snaitech assets in 2019 which will include the debt the Italian firm has accumulated.

Snaitech reported it generated earnings of $1.09 billion in 2017 which Playtech has pinned its strategy of improving revenues by entering the lucrative and established Italian betting market.

The move to enter the Italian market by acquiring Snaitech is intended to offset a recent downturn for the Playtech enterprise. In a February financial report, Playtech has reported an 11 percent year-on-year drop in revenue for the first 51 days of 2018. Other issues in the Asian jurisdictions plus the UK Gambling Commission’s action regarding fixed-odds betting terminals is also expected to disrupt the firm’s revenue stream. Solid income gain is the main reason for this major billion dollar purchase by Playtech.

 

 

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