Gambling technology company Playtech, founded by Israeli billionaire Teddy Sagi, announced an agreement to purchase a 70.6 percent stake in Italian betting and gaming company Snaitech for €291 million ($359.2 million) in cash.

The deal will create a major vertically integrated retail and online Italian gaming business that will control its own technology across all products and verticals, the company noted. It is also part of the London-based company’s strategy to “invest in cash generative businesses with strong management, similar DNA and attractive financial returns.”

Upon completion of the 70.6 percent stake purchase, Playtech will be required to make an offer for the takeover of the remaining shares. Including Snaitech’s debt, the enterprise value of the company would be 846 million euros ($1.05 billion), Playtech said.

“The acquisition of Snaitech represents the continuation of our strategy to invest in leading retail brands in fast-growing, regulated markets,” said Playtech CEO MorWeizer.

The deal will also help Playtech establish a strong presence in Italy, one of Europe’s largest online gaming markets, the company said.

Playtech said it expects the initial deal to be complete by the third quarter of the year, and the overall takeover to be finalized in the last quarter.