Italian gaming group Lottomatica LTMC.MI said it had agreed to buy online betting provider SKS365 Malta Holdings, in a deal that valued the owner of brands such as Planetwin365 and PlanetPay365 at 639 million euros ($677 million) including debt.

Lottomatica said the acquisition, carried out through its GBO unit, would give it an online market share of 28.3% in Italy.

SKS365 has around 600,000 customers registered online and 1,000 betting outlets in Italy, giving it a 9.6% market share in the iSports sector and a 6.4% one in iGaming.

It expects a 74 million euro core profit this year, of which more than two thirds from its online operations.

The deal is expected to deliver cost savings of 60 million euros, while adding at least 5 million euros in revenues by 2026, Lottomatica said.

The operation, which is set to be completed in the first half of next year, will be financed through cash and debt, for which Lottomatica has already secured a bridge loan facility of 500 million euros.

Lazard advised SKS365 while Mediobanca acted as financial adviser to Lottomatica.