(Bloomberg) -- Playtech Plc’s shares jumped the most in almost three years after the European gaming company confirmed reports it was in exclusive talks with Flutter Entertainment Plc on the potential sale of its Italian unit, Snaitech, for about £2 billion ($2.6 billion).
The London-listed company confirmed the discussions in a statement Wednesday, following a report by Sky News. Playtech said it had granted Flutter a period of exclusivity to complete due diligence and finalize transaction documentation.
Shares rose 19% to 639 pence at 12:23 p.m. on Wednesday, after earlier rising as much as 22%, the biggest intraday increase since October 2021.
FanDuel parent Flutter, which has benefited from a surge of new customers and revenue in the US, has been looking to expand through acquisitions. Chief Executive Officer Peter Jackson told Bloomberg on Tuesday that mergers were part of the company’s strategy to build “podium positions” in local markets.
Milan-headquartered Snaitech, founded in 1990, is one of Italy’s leading betting companies. It operates gaming machines, manages horse racing and sports betting, and owns race tracks in Milan and Tuscany.
In 2021, Flutter agreed to buy Italy’s oldest gaming company Sisal for £1.62 billion and UK-based online bingo operator Tombola Ltd for £402 million.
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