Gambling software development company Playtech has confirmed that it has received approval to buy a majority stake in Italian betting and gaming firm Snaitech SpA from the gaming regulator in Italy.
Playtech, which develops platforms for online casino and online poker, had in April agreed to buy a 70.6% stake in Snaitech for €291 million (£254 million) in cash.
The deal is expected to close next month. After that, Playtech will have to make a takeover offer for the remaining stake in Snaitech.
Commenting on the transaction back in April, 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.
“The acquisition delivers the Board’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.”
Playtech claims the deal will create a vertically integrated retail and online Italian gaming business that will control its own technology across all products and verticals from land-based to online and is in line with Playtech’s strategy to invest in profitable, highly cash generative businesses with strong management, similar DNA and attractive financial returns.
It added that Snaitech significantly enhances Playtech’s revenue mix towards regulated markets, with 78% of the enlarged group’s 2017 pro-forma revenues from regulated markets. and comes with an experienced management team with a successful operational and financial track record who will remain with Playtech post acquisition.