Playtech, the Isle of Man based gambling software development company, has announced that it has agreed a deal to purchase the Italian gaming company Snaitech for €846m ($1.04bn), through the purchase of Global Games and OI Games 70.6% shareholdings.

Following the initial acquisition of shares, which is expected to be completed in Q3 2018, Playtech are required to make a mandatory takeover offer for the all of the remaining shares. This is subject to the initial purchase being approved by regulators and shareholders. The purchase price of shares in both instances will be €2.19 ($2.70) per share in cash.

Playtech are looking to take advantage of Snaitech’s position as one of the largest gaming and betting machine networks in Italy, comprising of over 10,000 video lottery terminals (VLT) and 54,000 Amusement with prize machines (AWP).

With generated revenue of €890m ($1.09bn), net profit totalling €27m ($33m) and an EBITDA of €136m ($167m) in 2017, Snaitech are well positioned in Italy, the fastest growing gaming market in Europe.

These results were achieved in a regulated market which only has a 7% online market share, compared to the UK’s 41%. Playtech reportedly see huge potential for future growth of the Italian online market, and will be looking to Snaitech to achieve it.

Commenting on his company’s multi-million euro acquisition, Mor Weizer, Chief Executive Officer of Playtech, said: “The acquisition of Snaitech represents the continuation of our strategy to invest in leading retail brands, in fast growing regulated markets. The acquisition delivers the Board’s strategic objective to improve the quality and diversification of group revenue, whilst delivering exposure to high growth end markets, by utilising the strength of Playtech’s balance sheet.”

Fabio Schiavolin, Chief Executive Officer of Snaitech, added: “The combination of Playtech’s technology and experience in Italy with Snaitech’s powerful brand mean we will be better able to capture the online opportunity in the fast growing and dynamic Italian market.  We are pleased to be joining the Playtech team and look to the future with confidence and excitement.”