Bally's Intralot has reached an agreement to purchase Evoke, the Gibraltar-based parent company of William Hill and 888, in an all-stock transaction valued at approximately £243 million ($326 million).
As part of the deal, shareholders of Evoke will receive 0.537 new shares of Bally's Intralot for each share they hold, along with a limited cash alternative. This offer values Evoke at 52p per share, which represents a 77% premium over its three-month volume-weighted average share price of 29.4p prior to the announcement of Bally's Intralot's potential acquisition in April.
The offer is also notably a 138% premium compared to Evoke's share price of 21.9p on December 9, 2025, the day before the company initiated a strategic review.
Directors of Evoke plan to recommend the transaction to shareholders unanimously. Pending necessary approvals, the deal is anticipated to finalize in either the fourth quarter of 2026 or the first quarter of 2027. Should no shareholders opt for the cash alternative, Evoke investors will hold approximately 11.5% of the new entity.
This acquisition comes after Evoke faced significant pressure, leading it to appoint Morgan Stanley and Rothschild in December to explore strategic alternatives. The company currently has a net debt of around £1.8 billion, which exceeds £1.86 billion ($2.50 billion) for the fiscal year ending December 31, 2025, with a market capitalization of just over £180 million ($241.55 million). Bally's Intralot concluded FY2025 with an adjusted net debt of €1.49 billion ($1.73 billion).
Changes to UK gambling taxes have played a crucial role in prompting this review. The remote gaming duty increased from 21% to 40% in April, and the duty on online sports betting is set to rise from 15% to 25% in April 2027, excluding horse racing. Both companies noted that these changes have created a significant shift in the UK market landscape, leading to considerable competitive disruptions.
Evoke's share price has plummeted by 90% since its acquisition of William Hill's network of 1,400 betting shops for £2.2 billion ($2.95 billion) four years ago. Recently, the company announced the closure of about 200 William Hill locations starting in May, attributing this decision to rising costs, including tax hikes. CEO Per Widerström has indicated that these tax changes could cost the business up to £135 million ($181.16 million) annually.
Mark Summerfield, chairman of Evoke, stated that the agreed terms represent the most favorable and achievable outcome for shareholders, especially in light of the UK tax changes and the company's financial structure.
Bally's Intralot anticipates that the merged entity will operate in six primary markets, with a total addressable market estimated at €36 billion ($48.31 billion). In the UK, it is projected to rank second in the iGaming sector and fourth in online sports betting.
“Intralot remains confident that the UK is a highly attractive market, and the current market dislocation offers a significant opportunity for consolidation,” the company remarked.
The Shaked family, co-founders of 888 in 1997 and Evoke's largest shareholders with a 19.2% stake, have expressed their support for the merger.
Intralot supplies technology to 12 state lotteries across the US and has operations in Europe, South America, North Africa, Southeast Asia, Australia, and New Zealand.
Concerns have been raised regarding the combined debt load. However, Bally's Intralot CEO Robeson Reeves has stated that there are no immediate plans to divest assets, although exceptionally high offers could be considered.