Flutter closing in on £2bn acquisition of Playtech’s consumer operations - report

Paddy Power owner Flutter Entertainment is reportedly closing in on a £2bn swoop for the consumer operations of Playtech.

According to Sky News, Flutter - which recently shifted its primary stock market listing to New York - could strike a formal agreement with Playtech as soon as Monday.

City sources told Sky the deal would be worth about £2bn, or €2.3bn, which is equivalent to roughly the entire market capitalisation of Playtech.

One insider cautioned that an announcement could be delayed until later this week.

Shares in Playtech rose sharply on Monday after it said it had reached an agreement with Mexico’s Caliente following a long-running dispute over substantial payments.

The sale of Snaitech, one of Italy's biggest gambling companies, will leave Playtech as a business-to-business provider of software, and - according to analysts - is likely to result in a formal takeover bid in the medium term, Sky said.

Talks with Flutter were revealed by Sky News last month.