LONDON (ShareCast) - (Sharecast News) - Gambling technology firm Playtech said on Tuesday that it has agreed to sell its Italian business, Snaitech, to Paddy Power owner Flutter Entertainment for €2.3bn in cash.

Once the deal completes, Playtech said it will 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 also said that after completion, it plans to return €1.7bn to €1.8bn to shareholders by way of a special dividend.

Chief executive Mor Weizer said: "While Snaitech has been an important part of the Playtech Group's growth in recent years, the board agreed that this transaction represents a compelling opportunity to maximise value for our shareholders while also allowing them to share in further upside from continued ownership of a leading B2B business.

"The combination of the Playtech Group's leading technology with its exposure to attractive markets, including in the Americas and Europe, provides a strong platform for growth in the medium-term. We are excited about what the future holds and the many opportunities ahead of us.

"In Flutter, Snaitech will have a new owner with an existing presence in Italy and all of the opportunities that brings. I'm confident that Snaitech will continue to excel under their ownership."

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