Online gambling technology provider Playtech has agreed to buy a 70.6% stake in Italian gambling firm Snaitech, a move that the UK company expects will enhance its “revenue mix towards regulated markets.”
Playtech makes a $1.05B play for Italian betting firm SnaitechThe “initial acquisition” of Snaitech carries a price tag of €846 million ($1.05 billion), Playtech announced in a Thursday filing. The British gambling company is required to make a mandatory takeover offer for the remaining stake in Snaitech after the initial acquisition is completed sometime in the third quarter of 2018. The mandatory takeover offer is aimed at delisting Snaitech from the Milan Stock Exchange, according to Playtech. It expects the entire transaction will be completed before the year ends.
The deal will be funded by Playtech’s existing cash resources, plus new debt, and is expected to deliver cost material annual cost synergies of €10 million.
If the deal manages to clear regulatory and shareholder approvals, it would mean that Playtech will be seeing 78 percent of its revenue from regulated markets. The Snaitech acquisition will allow Playtech to establish “strong presence in Italy, Europe’s largest and growing gaming market, a fragmented market which is relatively underdeveloped online.”
Playtech sees the acquisition as an opportunity to combine “two market leading players in the B2B/B2C space with brand strength and scalable offerings,” giving the British company “incremental organic growth potential and greater strategic optionality.”
Snaitech is licensed by the Italian Monopolies Authority to offer gaming services and products, including sport and horse racing betting; virtual sports; video lottery; online and mobile poker, skill games, casino games, bingo; esports; and pari-mutuel. The SNAI retail betting network has more than 1,600 points of sale located throughout Italy. The group also operates 60,000 “New Slot” as well as more than 10,000 video lotteries across the country.
In 2017, Snaitech generated revenue €890 million and EBITDA of €136 million.
The acquisition deal couldn’t have come at a better time for UK’s Playtech, which has been battling the sweeping regulatory changes at its home market on top of the persisting operational problems in Asia.
Playtech reported a modest 18% net revenue gain in 2017, following Malaysia’s crackdown on gambling in the country. In February, Playtech Chairman Alan Jackson said the company is looking to diversify its revenue base by investing in fast growing regulated and regulating markets in Europe and Latin America.
Showing posts with label Snai. Show all posts
Showing posts with label Snai. Show all posts
April 12, 2018
May 11, 2015
SNAI strengthens Italian market position with Cogemat merger
Italian sports betting operator Gruppo SNAI has agreed to a corporate merger with Italian licensed gambling operator Cogemat, which will see the new company valued at + €145 million.
SNAI will incorporate all assets and business subsidiaries of Cogemat, including gambling technology and content provider Cogetech which services 9% of the Italian gambling machines market.
Italian news sources report that SNAI governance had concluded the merger deal with Global OI Games and Games 2 the majority shareholders in the Cogemat business. SNAI are believed to want to strengthen their position within the Italian gambling machines market, and further enhance its digital offering to the Italian market.
Gruppo SNAI released a short corporate statement detailing its intentions for the acquisition of Cogemat enterprises. The operator outlined the following
“The company will look to become the co-leader of the market with a share of over 15%” and will “strengthen the group’s leadership in the segment of horse betting and sports.”
“SNAI will further aim to strengthen its position in the segment of the gaming machines,” a market worth 48 billion euro in 2013”.
The merger deal will see Cogetech shareholders acquire 38% of the new company shares which are to be distributed under Gruppo SNAI terms and deal precedents.
SNAI will incorporate all assets and business subsidiaries of Cogemat, including gambling technology and content provider Cogetech which services 9% of the Italian gambling machines market.
Italian news sources report that SNAI governance had concluded the merger deal with Global OI Games and Games 2 the majority shareholders in the Cogemat business. SNAI are believed to want to strengthen their position within the Italian gambling machines market, and further enhance its digital offering to the Italian market.
Gruppo SNAI released a short corporate statement detailing its intentions for the acquisition of Cogemat enterprises. The operator outlined the following
“The company will look to become the co-leader of the market with a share of over 15%” and will “strengthen the group’s leadership in the segment of horse betting and sports.”
“SNAI will further aim to strengthen its position in the segment of the gaming machines,” a market worth 48 billion euro in 2013”.
The merger deal will see Cogetech shareholders acquire 38% of the new company shares which are to be distributed under Gruppo SNAI terms and deal precedents.
September 07, 2010
Snai in takeover battle
Italian online sports betting leader Snai is the subject of a tussle between two private equity-backed gaming operators aiming to take over the indebted gaming group.
Snai, currently struggling with €250m of net debt, confirmed to the Financial Times on Friday that it was the subject of a takeover approach from rival Sisal, owned by UK private equity groups Permira and Apax Partners.
Italian private equity houses Clessidra and Investindustrial are also seeking to merge Snai with fellow land-based and online operator Cogetech, owned by Investindustrial, revealed the newspaper.
Snai was close to being bought last year by a consortium consisting of the UK’s Bridgepoint and France’s Axa Private Equity, but the investment groups are suing for damages after the Italian company rejected their bid and decided instead to refinance via a bond issue.
Snai, which also has over 900 shops and 2,500 smaller gambling stalls, or corners, boasted a market share of 34.3% of Italy's online sports betting market in the first quarter of 2010, according to gambling data provider Trust Partners.
Rival Sisal, which had a 10.2% market share in the first quarter, is also in talks to obtain sports book and poker room Betting 2000, according to reports earlier this year.
Snai, currently struggling with €250m of net debt, confirmed to the Financial Times on Friday that it was the subject of a takeover approach from rival Sisal, owned by UK private equity groups Permira and Apax Partners.
Italian private equity houses Clessidra and Investindustrial are also seeking to merge Snai with fellow land-based and online operator Cogetech, owned by Investindustrial, revealed the newspaper.
Snai was close to being bought last year by a consortium consisting of the UK’s Bridgepoint and France’s Axa Private Equity, but the investment groups are suing for damages after the Italian company rejected their bid and decided instead to refinance via a bond issue.
Snai, which also has over 900 shops and 2,500 smaller gambling stalls, or corners, boasted a market share of 34.3% of Italy's online sports betting market in the first quarter of 2010, according to gambling data provider Trust Partners.
Rival Sisal, which had a 10.2% market share in the first quarter, is also in talks to obtain sports book and poker room Betting 2000, according to reports earlier this year.
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