The firm has acquired 95 per cent of Flair which it has been working closely with for the last two years, most recently on bringing the Gormiti brand to the UK.
Peter Brown will continue as chief executive of the firm and the team will be unchanged.
Brown (pictured), said: “We are delighted to have joined the Giochi Preziosi family of companies. Over the last two years we have got to know Giochi Preziosi and we have admired their high levels of professionalism in both marketing and product development.
"Gormiti is an outstanding example of a highly successful brand which Giochi Preziosi has created themselves. Equally, in the girls’ electronic category, My Life has proved that the toy industry can regain young consumers previously lost to the world of computer games.
“When we started Flair in 1999 we promised our shareholders that at the right time we would provide them with an exit. That time has now come. At the same time a significant proportion of Flair’s staff will also benefit as share option holders.”
Richard Beecham, Flair’s outgoing chairman, said: “The shareholders are very pleased with their investment in Flair. I am proud to have helped Peter and his team grow so successfully over the last nine years. I am also pleased that Peter and all the management team and staff will continue within the Company”.