Online games and systems giant Playtech has planted its flag in Italy’s lucrative gambling and betting markets with the purchase of Italian bookmaker Snaitech.
Both companies hailed the €846 million acquisition (US$984.6 million), which enlarges Playtech’s footprint in regulated markets to roughly 78 percent of total 2017 pro forma revenues and delivers an integrated retail and online business that controls its own technology across all products and verticals, from land-based to online, and is led by experienced management with a record of success in one of Europe’s largest markets.
Snaitech generated EBITDA of €136 million last year on €890 million in revenues, implying an EV/EBITDA purchase multiple of 6.2 times, not counting synergies post-acquisition.
Playtech CEO Mor Weizer said the deal accomplishes the company’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.”
Fabio Schiavolin, chief executive of Snaitech, said, “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.”
