Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Flutter is in exclusive talks to buy London-listed Playtech’s Italian business in a deal that could value the betting company at around £2bn.Shares in Playtech jumped 19 per cent on Wednesday after the gaming software group confirmed they were in talks with Flutter over the Italian business, known as Snaitech. Shares in Flutter, which reported a 20 per cent jump in second-quarter revenue late on Tuesday, rose 10 per cent. “There can be no certainty that any transaction regarding the potential sale of the Snaitech business will ultimately be agreed, or as to its terms,” Playtech said in a statement. Paddy Power owner Flutter said there was “no certainty” it would proceed with a deal but that it would “provide an update as appropriate”. A person familiar with the talks said Snaitech was an attractive target for an investor looking to establish a market dominant position in Italy, “one of the most underpenetrated markets in Europe”. News of the discussions was first reported by Sky. Playtech acquired a majority stake in Snaitech, one of Italy’s biggest gambling companies, in 2018 in a deal worth an estimated €846mn, later taking full control.“Flutter’s bid is in direct response to the consolidation happening in the Italian online gaming market,” said Andrew Tam, analyst at Redburn Atlantic, pointing to Lottomatica’s recent acquisition of sports betting operator SKS365.Flutter and Snaitech combined would have an Italian online market share of 30.3 per cent, overtaking Lottomatica’s 29.1 per cent, according to an estimate by David Brohan at Goodbody.Roberta Ciaccia, an analyst at Investec, wrote in a note that “today’s news report suggests that there is a significant value in Snaitech (and hence Playtech) that had not been factored in by investors”. News of the talks was disclosed a day after Flutter reported strong growth for the three months to the end of June with revenue up 20 per cent to over $3.6bn on the previous year, following a strong performance in the US.Flutter, which recently switched its primary listing from London to New York, has a dominant market position in the US after acquiring a majority stake of FanDuel in 2018. In February it acquired UK gaming software company BeyondPlay. “There are many, many markets in either regulated or soon to be regulated markets where we’re not yet present with either a podium position or certainly sort of gold medal position,” Flutter chief executive Peter Jackson said on a call with investors following results. The group also raised its forecasts for the rest of the year.
