Uk-based Playtech acquires 70.6% stake Snaitech for $1.05 billion

In a strategic shift the UK-based gambling company is aiming to relocate the sources of its revenues from regulated markets in the wake of increased headwinds from lawmakers in its home market.

On Thursday, Playtech, a British gambling technology company stated, it has agreed to purchase a 70.6% stake in Snaitech, a gaming firm, for $1.05 billion (846 million euros).

According to sources this move is aimed at garnering the bulk of its revenues from regulated markets.

In a statement Playtech stated, following the successful purchase of the 70.6% stake, it would necessarily have to make an offer for the balance stake in Snaitech.

The strategic move will see 78% of its revenues from come from regulated markets.

Snaitech is fully regulated in the markets in which it operates, said Playtech.

The deal, which would be funded by Playtech’s existing cash and new debt, is expected to deliver cost synergies of 10 million euros.

Snaitech, reported revenues of 890 million euros and had core earnings of 136 million euros in 2017.

The deal comes midst sweeping regulatory changes at Playtech’s home market, the UK, with lawmakers hinting at huge cuts on top stake limits in gambling machines.

UK-based Playtech began 2018 with a lag in its gaming division revenues following a crackdown on gambling syndicates in Malaysia, which incidentally is one of its biggest market in Asia.

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