Online gambling technology provider Playtech has agreed to buy a 70.6% stake in Italian gambling firm Snaitech, a move that the UK company expects will enhance its “revenue mix towards regulated markets.”

The “initial acquisition” of Snaitech carries a price tag of €846 million ($1.05 billion), Playtech announced in a Thursday filing. The British gambling company is required to make a mandatory takeover offer for the remaining stake in Snaitech after the initial acquisition is completed sometime in the third quarter of 2018. The mandatory takeover offer is aimed at delisting Snaitech from the Milan Stock Exchange, according to Playtech. It expects the entire transaction will be completed before the year ends.

The deal will be funded by Playtech’s existing cash resources, plus new debt, and is expected to deliver cost material annual cost synergies of €10 million.

If the deal manages to clear regulatory and shareholder approvals, it would mean that Playtech will be seeing 78 percent of its revenue from regulated markets. The Snaitech acquisition will allow Playtech to establish “strong presence in Italy, Europe’s largest and growing gaming market, a fragmented market which is relatively underdeveloped online.”