Flutter in talks to place £2bn bet on Playtech’s Italian arm | Business News

The owner of Paddy Power is in talks to buy the consumer arm of London-listed Playtech in a deal that could be worth around £2 billion.

Sky News has learned that Flutter Entertainment, which recently moved its main listing to the US, is in talks to buy Snaitech, one of Italy’s biggest gambling companies.

It was unclear on Wednesday how advanced the negotiations were, but one source suggested they were sufficiently detailed that Playtech would be required to confirm them publicly.

A formal agreement is unlikely to be reached until at least next month.

If completed, a deal would value Snaitech at a premium to the current market capitalization of Playtech, which also has a sizable intercompany gambling technology operation.

On Wednesday morning, Playtech shares were trading at around 548p, giving it a market value of around £1.66bn.

Snaitech, which trades under the Snai brand, saw revenue grow by 5% to €946.6 million in the last financial year, and maintained its market leading position among Italian sports betting brands.

Selling the business to Flutter would leave Playtech as a pure B2B company, which would likely attract interest from potential bidders.

Led by Mor Weiser, Playtech has had a strong run of recent results due to the US expansion of its B2B operations and the excellent performance of Snaitech.

Playtech has been at the center of a succession of acquisitions and other corporate dramas in recent years.

In 2022, Playtech shareholders rejected a takeover bid from Aristocrat Entertainment, an Australian company.

The following year it was reported that he had approached London-listed 888 – now called Evoke – about a combination, but that too fell through.

For Flutter, a deal would mark the latest stage in a relentless corporate overhaul overseen by Peter Jackson, its chief executive.

The company recently moved its main listing to the US, a move that raised concerns about the attractiveness of the London stock market.

It has been building its international empire through acquisitions, with Snaitech being the latest substantial business to be targeted by Jackson.

Flutter has already acquired Sisal, another large Italian group, although it is unclear whether it would be formally combined with Snaitech.

On Tuesday, it reported strong financial results for the second quarter, shortly after rival Entain – which owns Ladbrokes – also reported better-than-expected figures.

Entain also recently appointed a new chief executive after going through a difficult period.

Flutter, which now has a market capitalization of almost £26 billion, and Playtech declined to comment.