Gambling software company Playtech plc (LSE:PTEC), controlled by Israeli billionaire Teddy Sagi, has reached an agreement to buy a 70.6% stake in Italian gambling and gaming company Snaitech S.p.A. Upon completion of the initial acquisition, Playtech will be required to make a mandatory takeover offer for all the remaining shares in Snaitech. The overall deal including the Italian company's debt, which will be completed in the fourth quarter of 2018, will cost Playtech $1.05 billion.
Playtech said that the deal creates a leading vertically integrated retail and online Italian gaming business that will control its own technology across all products and verticals from land-based to online. The deal is also In line with Playtech's strategy to invest in profitable, highly cash generative businesses with strong management, similar DNA and attractive financial returns. The deal will help Playtech establish a strong presence in Italy, Europe's largest and growing gaming market, a fragmented market which is relatively underdeveloped online.
Playtech CEO Mor Weizer said, "The acquisition of Snaitech represents the continuation of our strategy to invest in leading retail brands in fast growing, regulated markets."
Published by Globes [online], Israel business news - www.globes-online.com - on April 12, 2018
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