Playtech has agreed to buy a 70.6 per cent stake in Italian betting and gaming company Snaitech for €846m.
The company will be required to make a mandatory takeover offer for all the remaining shares once the initial stake purchase is complete, which is expected to occur in Q3 2018. The overall transaction is expected to be complete in Q4 2018.
In 2017, Snaitech generated revenue and EBITDA of €890m and €136m respectively. The acquisition will give Playtech a strong presence in Italy and would mean 78 per cent of revenue for the the company would come from regulated markets.
Mor Weizer, CEO of Playtech, said: "The acquisition of Snaitech represents the continuation of our strategy to invest in leading retail brands in fast growing, regulated markets. The acquisition delivers the board's strategic objective to improve the quality and diversification of group revenue, whilst delivering exposure to high growth end markets, by utilising the strength of Playtech's balance sheet.
"Playtech has always been at the forefront of its industry and the acquisition offers the opportunity to create a vertically integrated B2B2C operator in Europe's largest gambling market, delivering significant value to shareholders."
Fabio Schiavolin, CEO of Snaitech, said: "This acquisition reflects Snaitech's position as one of the leading and best known brands in Italy and delivers meaningful value to our shareholders. The combination of Playtech's technology and experience in Italy with Snaitech's powerful brand mean we will be better able to capture the online opportunity in the fast growing and dynamic Italian market. We are pleased to be joining the Playtech team and look to the future with confidence and excitement."
