Playtech will acquire SNAITech for USD 1.05 B

Playtech said Thursday that it will buy Italy's SNAITech SpA (SNA.MI) for 846 million euros ($1.05 billion) in a bid to grow revenue from regulated markets.

The gambling-software company said it has reached an agreement with certain SNAITech shareholders to acquire around 70.6% of the Italian company's issued share capital. After completing the initial acquisition, FTSE 250-listed Playtech said it will be required to make an offer for the remaining SNAITech shares.

The deal will be funded through a combination of cash and new debt, Playtech said. The initial acquisition is expected to be completed in the third quarter, and the overall transaction finalized in the fourth quarter, subject to both regulatory and shareholder approval, Playtech said.

At 0733 GMT, shares in SNAITech were up 15% at EUR2.16, while shares in Playtech were up 8.3% at 824.60 pence.

Playtech said the acquisition will significantly enhance its revenue mix in regulated markets and establish a strong presence in Italy. Once the deal is finalized, 78% of Playtech's pro-forma revenue will be generated in regulated markets, it said.

SNAITech had revenue of EUR890 million in 2017, with earnings before interest, taxes, depreciation and amortization of EUR136 million, Playtech said. The U.K. company said the deal creates a vertically integrated retail and online-gaming business that will control its own technology across all products and verticals.

Playtech PLC (PTEC.LN) said Thursday that it will buy Italy's SNAITech SpA (SNA.MI) for 846 million euros ($1.05 billion) in a bid to grow revenue from regulated markets.

The gambling-software company said it has reached an agreement with certain SNAITech shareholders to acquire around 70.6% of the Italian company's issued share capital. After completing the initial acquisition, FTSE 250-listed Playtech said it will be required to make an offer for the remaining SNAITech shares.

The deal will be funded through a combination of cash and new debt, Playtech said. The initial acquisition is expected to be completed in the third quarter, and the overall transaction finalized in the fourth quarter, subject to both regulatory and shareholder approval, Playtech said.

At 0733 GMT, shares in SNAITech were up 15% at EUR2.16, while shares in Playtech were up 8.3% at 824.60 pence.

Playtech said the acquisition will significantly enhance its revenue mix in regulated markets and establish a strong presence in Italy. Once the deal is finalized, 78% of Playtech's pro-forma revenue will be generated in regulated markets, it said.

SNAITech had revenue of EUR890 million in 2017, with earnings before interest, taxes, depreciation and amortization of EUR136 million, Playtech said. The U.K. company said the deal creates a vertically integrated retail and online-gaming business that will control its own technology across all products and verticals.