Playtech PLC (LSE:PTEC) has confirmed talks are underway over the sale of its Italian gaming business Snaitech to Betfair owner Flutter Entertainment PLC (LSE:FLTR) for a figure said to be in the region of £2 billion.
In its statement, gaming tech business Playtech said it had granted Flutter a period of exclusivity to complete due diligence, though there was no certainty that a deal would be agreed.
Shares in Playtech jumped 21% to 652p, with the Snaitech price exceeding its entire market value from yesterday.
Snaitech, which trades under the brand Snai, grew revenues by 5% to €946.6m in the last financial year and is the market leader among Italian sports betting brands.
Flutter shares also surged today following an upbeat trading statement that showed it has continued to grow rapidly in the US, while the Euro 2024 football tournament had seen favourable results.
Flutter boss Peter Jackson said the results had given Flutter the “confidence to continue driving customer acquisition in the second half, building a bigger business.”
Only yesterday, Flutter was reported to be eyeing Brazilian gambling operator Betnacional, the country’s fifth-largest betting operator with a market share of around 7%.
Owned by UK-based group NSX, the reports suggested that Flutter would pay around £1 billion if a deal is concluded.