(Reuters) -Swisscom said on Friday it will buy Vodafone Italia for 8 billion euros ($8.70 billion)to merge the business with its Italian subsidiary Fastweb.

The deal will create Italy's second-biggest fixed-line broadband operator behind TIM, with a strong presence in the prized business segment, and a leading player in mobile.

The transaction consideration will be 100% cash and will be fully debt-financed, Swisscom said.

"Vodafone Italia and Fastweb will bring together complementary high-quality mobile and fixed infrastructures, competencies, and capabilities to create a leading converged challenger in a market with material growth opportunities," Swisscom said in a statement.The deal is expected to be closed in the first quarter of 2025, and will not require a shareholder vote, the company added.

($1 = 0.9194 euros)

(Reporting by John Revill, editing by Linda Pasquini)