Playtech intends to issue a special dividend to shareholders after completing the sale of its Snaitech division to Flutter Entertainment.
The company intends to return €5.73 per share to shareholders through the special dividend, which is expected to be declared as soon as practicable and paid in June.
The €2.3 billion sale of Snaitech was agreed in September 2024 and is expected to complete at the end of this month.
“Completion of the transaction will enable Playtech to focus on its technology-led offering in high-growth B2B gambling markets with an accelerated growth plan and an extensive portfolio of strategic ventures,” Playtech said in a statement Wednesday. “The Board believes that there is significant further upside from Playtech’s simplified business model and focused B2B strategy going forward.”
The acquisition will enhance Flutter Entertainment’s position in Italy, where the company owns Sisal, the largest brand within its International division. In 2024, Flutter generated revenue of $1.48 billion in Italy, a rise of 10 per cent compared to the previous year.
Flutter Entertainment said: “The acquisition of Snai fully aligns with Flutter’s strategy to invest in leadership positions in attractive international markets, creating value through providing access to Flutter’s market leading products and capabilities.
“Adding Snai to the Flutter portfolio will consolidate Flutter’s leadership position in Italy and create a position of increased scale to capitalize on the growth opportunity in Europe’s largest regulated market.”
Shares in Playtech plc (LSE:PTEC) were trading 6.52 per cent higher at 719.00 pence per share in London Thursday morning, while shares in Flutter Entertainment plc (NYSE:FLUT) gained 11.37 per cent in New York on Wednesday to close at $236.67 per share.