Playtech sheds B2C unit as Flutter confirmed for buyout bid

Playtech is streamlining its operations and transforming itself into a business-to-business software provider exclusively, stepping away from the business-to-consumer sector.

The confirmation comes from a media outlet, citing Flutter Entertainment and Playtech sources, which said that Flutter is delivering on its previous promise to buy out Snaitech, Playtech’s B2C business, as soon as this week.

Snaitech could be changing hands to Flutter sooner than we think

The news first surfaced a month ago, but it has now been confirmed anew by Sky News and other media outlets, citing sources familiar with the matter.

Flutter Entertainment is reportedly prepared to shed £2bn to acquire Snaitech and consolidate its presence in the Italian iGaming and sports betting market.

As Italy becomes a harder-to-operate market, consolidations of this sort allow existing market leaders to enhance their value proposition and boost their bottom line, which is precisely what Flutter Entertainment is after.

The news about the potential confirmation of the acquisition comes after this morning Playtech said that it was renegotiating a deal with Caliplay and its subsidiary, Caliente Interactive, with the companies seeking an amicable resolution of a recent spat over unpaid service fees.

Playtech’s shares first jumped on the news of this agreement, which is still pending Mexican authorities’ antitrust go-ahead. An official announcement by the companies is yet to follow in the matter of Snaitech’s buyout, however, Sky News cited a person who argued that Playtech and Flutter may not confirm the news officially today.

Playtech could be acquired by another business

Playtech’s decision to streamline as a B2B entity could signal that the company is potentially looking to be taken over by a larger industry company. Playtech, though, has mostly posted robust financials – both through Snaitech and with its business-to-business operations.

The company was previously the target of a takeover bid by Aristocrat Entertainment, but the bid was rejected. Playtech itself sought to reportedly acquire Evoke (formerly 888) but was turned down as well. Flutter Entertainment did not itself signal that may be interested in buying out Playtech’s full portfolio offering.

Image credit: Playtech