Bally’s Intralot Agree £243m Evoke Buyout Terms; Share Price Rockets

Bally’s Intralot have reportedly struck an agreement to buy out Evoke in a deal worth £243 million. The Greek gambling firm’s board recommended an all-share acquisition, and now Evoke shareholders will be entitled to 52p per share.

Previously, it was thought Bally’s Intralot were considering a 50p per share offer, which would have valued Evoke at £225m. But in the wake of the announcement, Evoke’s climbed during early morning trading, soaring 16.2% to 46.4p per share.

A fast-moving story

Speculation had ruminated for a few months over Bally’s Intralot interest in acquiring Evoke. Both companies had been locked in talks since April, and Bally’s Intralot was originally given a deadline of May 18 to make a concrete offer or walk away before later being granted a three-week extension.

Earlier this week, it emerged private equity giant TPG were ready to aid the takeover bid, and they would commit around £889m to refinance Evoke’s existing debt and support the deal.

Indeed, Evoke confirmed in their annual report they had been burdened by debt levels of £1.86 billion, and that was impacted by the £2bn purchase of William Hill from Caesars Entertainment in 2022. Moreover, share prices owed to that transaction have plummeted by over 88% in the past few years, reflecting Evoke’s struggles.

When will the transaction happen?

Although no fixed deadline has been set for the takeover, it is thought that if things run smoothly, a deal could be finalised by the end of the last quarter of 2026 or by Q1 of 2027. Other terms outlined include an all-share structure and a partial cash alternative capped at £117m.

Facing up to gambling blues

A key factor behind the takeover has been the shift in the UK betting landscape. In light of increased taxation, where general betting duty paid on online sports bets will rise from 15% to 25% of gross gambling yield (GGY) in April 2027, Evoke has recognised a need for consolidation.

Due to the hike in gambling taxes, it is thought Evoke’s costs could rise as much as £135m per year which would hurt the balance sheet. Evoke had already suggested it could close as many as 270 William Hill shops to offset the impact of higher taxes, but the Bally’s Intralot acquisition is likely to tackle Evoke’s ongoing strategic and financial concerns.

An “attractive outcome”

Despite the constant speculation surrounding a potential deal, Evoke’s chairman, Mark Summerfield, believes the acquisition represents an “attractive outcome” for its shareholders.

In a statement, he said: “Having considered a range of opinions, I am delighted to announce the acquisition by Bally’s Intralot and believe the agreed terms represent the most attractive and deliverable outcome for Evoke shareholders.

“I’m confident Bally’s Intralot will be a strong and supportive owner of the business, and together with the most sustainable capital structure, the combination offers the best route to deliver long-term value for our shareholders and broader stakeholders.”

Bally’s Intralot hail breakthrough

Bally’s Intralot chairman Soo Kim echoed Summerfield’s comments, describing it as a landmark moment.

He said: “We are excited about the opportunity to bring Intralot and Evoke together to create a leading, diversified European gaming champion with greater scale, resilience and operational capability.

“Underpinned by the combination of Evoke’s iconic brands of incredible heritage, such as William Hill and 888, with Bally’s Intralot’s best-in-class technology and data capabilities, and the ability to invest our substantial free cash flow in growth markets — we are confident that the enlarged group will not just be stronger than before, but stronger than ever.”