Bally’s Intralot announced that it has reached an agreement to acquire Evoke, the parent company of betting brands William Hill and 888.
As part of the deal, Evoke shareholders will be entitled to receive 0.537 shares in Bally’s Intralot, equivalent to 52 pence per Evoke share, valuing the company at £243.1 million ($327 million).
The offer represents a 77% premium to the Evoke share price of 29.4p prior to Bally’s possible offer announcement in April.
Most Attractive Outcome for Shareholders
“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,” said Soo Kim, Chairman of Bally’s.
Mark Summerfield, Chairman of Evoke, added, “Having considered a range of options, I am delighted to announce the Acquisition by Intralot and believe the agreed terms represent the most attractive and deliverable outcome for Evoke shareholders.”
Spotify and Uber investor TPG reportedly was ready to finance the deal, and the release confirmed that it, alongside Oaktree and OHA, had committed approximately £889 million ($1.2 billion) to support the acquisition and refinance Evoke’s existing debt.
Evoke was formed in 2022, when 888 completed the £2 billion takeover of William Hill’s UK business. The company has struggled with debt ever since, which now stands at $2.5 billion.
Takeover Creates Betting Giant
If the proposed takeover goes through, it would make Bally’s the UK’s second-largest online casino and fourth-largest online sports betting operator.
Bally’s Intralot was formed in October last year when the Greek IT firm Intralot acquired the international digital gaming division of US-based gambling operator Bally’s Corporation. Bally’s Corporation became the majority shareholder of the combined company with roughly 58% ownership.
“The combination will create one of the world’s leading online betting and gaming groups with superior scale, exceptional brands, increased diversification, and a platform for strong growth through enhanced capabilities,” Summerfield added.
Soo Kim added, “Underpinned by the combination of Evoke’s iconic brands of incredible heritage, such as William Hill and 888, with Intralot’s best-in-class technology and data capabilities, highly executable synergies 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.”
Other Rival Giant Gaming Groups Forming
The William Hill brand in the US is not part of Evoke. Caesars completed the acquisition of the brand in 2021. It will now become part of another huge gambling corporation pending a takeover from Fertitta Entertainment.
Fertitta is primarily focused on casinos, but Caesars Digital is also increasing its presence in online gaming.
Fellow casino giant MGM Resorts is also reportedly the subject of a takeover bid. Barry Diller-founded People Incorporated, which already owns around 26% of MGM, has offered $48.30 per share in cash for the remainder of the company. That equates to an $18 billion deal.
MGM owns 50% of BetMGM along with UK-based gambling group Entain. Diller may look to take full control of the online brand if the takeover is approved.
Flutter remains the largest online gambling group in the world, featuring the US brand FanDuel and the European brands Paddy Power, Skybet, Betfair, and Snai. It had revenue of $16.4 billion last year.
The company is being rivaled by Allwyn, which completed a merger with Greece-based OPAP last year and acquired PrizePicks in the US. The new group reported a 21% revenue increase in the first quarter of the year.
Evoke had revenue of $1.78 billion last year. Bally’s Intralot said the new group would have yearly revenue of €3.165 billion ($3.68 billion).
