M&A: Flutter and Playtech in bidding war for acquisition of PlanetWin365

Lea Hogg October 4, 2023

SiGMA news

M&A: Flutter and Playtech in bidding war for acquisition of PlanetWin365

In the competitive world of online gaming, two London-listed giants, Flutter Entertainment and Playtech, are currently locked in a bidding war for the acquisition of PlanetWin365, a major Italian rival. This high-stakes contest for control over PlanetWin365’s parent company, SKS365, has drawn significant attention from industry insiders and market observers.

Auction magnitude

City sources with knowledge of the pending acquisition have indicated that this auction is poised to fetch a substantial sum, estimated to be in the region of £500 million, and potentially even surpassing £600 million. Such a substantial transaction would undoubtedly have significant implications for the gambling industry and the companies involved.

Playtech vs Flutter

For Playtech, a successful acquisition of PlanetWin365 would be a material move. With a market capitalization of approximately £1.4 billion, Playtech would see a notable expansion of its operations and market presence. Currently, Playtech operates under the consumer-facing brand Snaitech and already has established operations in the Italian market.

On the other hand, Flutter Entertainment, the parent company of well-known brands like Paddy Power and Betfair, has a market valuation of nearly £24 billion. For this industry giant, the acquisition of PlanetWin365 represents a strategic opportunity to further solidify its dominant position in the global gambling market. Flutter Entertainment, like Playtech, also maintains a strong foothold in Italy.

Lottomatica’s interest

Adding intrigue to this bidding war is the reported interest of Lottomatica, an Italian gaming group, in acquiring a stake in PlanetWin365. This indicates the competitive appeal of PlanetWin365 within the Italian gaming landscape.

PlanetWin365 is a versatile player in the gambling industry, catering to both online and brick-and-mortar audiences. With around 1,000 betting shops, it boasts a significant physical retail presence. In addition to its betting shops, PlanetWin365 also operates under the consumer brand PlanetSpin.

Financial expertise

The auction process for PlanetWin365 is being expertly managed by the financial advisory firm Lazard, which has a track record of handling high-value transactions in the corporate world. In related corporate news, Flutter Entertainment recently announced its acquisition of a controlling stake in MaxBet, a Serbian gaming group, for €141 million. This move further demonstrates Flutter’s commitment to expanding its global reach and market share.

Flutter Entertainment is also in the process of shifting its primary listing to New York. This strategic move is seen by some as a development that may impact the London stock market.

Both Flutter Entertainment and Playtech have chosen to maintain a discreet silence regarding their bids for PlanetWin365, declining to provide official comments on the matter. This silence only adds to the suspense surrounding this high-stakes bidding war. both Flutter and Playtech already maintain operational footholds in Italy, and PlanetWin365’s portfolio includes an online presence and approximately 1,000 physical betting shops. However, as of now, both Flutter and Playtech have declined to provide any official comments on the matter.

As the battle for control unfolds, industry insiders and investors are closely monitoring the situation, eagerly awaiting the outcome and the potential transformation it could bring to the dynamic world of online gaming.

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