Flutter Entertainment, the parent company of brands like Paddy Power and Betfair, is reportedly nearing the conclusion of a milestone £2 billion acquisition of the consumer operations arm of Playtech, one of the leading gambling technology providers. The acquisition signals Flutter’s ongoing commitment to expanding its global influence and portfolio.
Playtech Will Focus on Its B2B Business
According to a recent SkyNews report, the deal will focus on Playtech’s consumer-facing businesses, particularly the Italian sports betting operation Snaitech, which has grown into one of Italy’s largest gambling companies. This acquisition will reshape Playtech, leaving it to focus on its business-to-business (B2B) operations, which provide software solutions to the broader gambling industry.
News of this strategic acquisition first surfaced in August, with Playtech confirming that the upcoming deal values Snaitech at £2 billion ($2.57 billion). Playtech has been enjoying a recent streak of success driven by the growth of its B2B division and US market expansion. For example, a recent deal with Caliplay significantly bolstered its growth prospects.
Playtech’s decision to divest its consumer arm could enable it to focus more heavily on its software offerings, potentially leading to further growth or acquisition opportunities. Despite a failed takeover attempt by Australia’s Aristocrat Entertainment in 2022 and the collapsed potential merger with 888 Holdings in 2023, analysts agree that Playtech remains an attractive target for M&As.
Flutter Retains Significant Momentum
Snaitech represents an alluring opportunity for Flutter’s European ambitions. The brand has recorded robust performance, with revenues of €946.6 million ($1053.42 million) in the last financial year and a stable market position. Flutter hopes to bolster Snaitech’s offerings via its technology and operational expertise, creating a compelling offering for Italian players.
This deal marks another milestone achievement in Flutter’s recent acquisition streak. Last week, the gambling giant announced the acquisition of 56% of Brazilian operator NSX Group, which manages the popular local brand Betnacional. This strategic deal, valued at roughly $350 million, signals Flutter’s strategic push into the fast-growing and soon-to-be-regulated Brazilian market.
Flutter and Playtech should officially announce this momentous deal within a couple of days. The acquisition will follow the customary regulatory approvals, but the two companies reportedly aim to conclude the process as quickly as possible. As Flutter continues to pursue strategic acquisitions, it will further bolster its influence in the global gaming industry, positioning itself as a dominant player in an ever-evolving market.
Source : GamblingNews