Evoke, the company behind William Hill and the 888 brand, has agreed to a £243.1million takeover by Greek gambling operator Bally's Intralot in a major consolidation move within the betting sector.
The Athens-listed firm is offering 52 pence per share for the British bookmaker, representing a 33.8 per cent premium on Evoke's closing share price before takeover discussions were confirmed.
The recommended all-share transaction was announced on Friday following approximately two months of negotiations between the two companies.
An initial approach from Bally's Intralot earlier this year valued the business at around £225million.
Based on current exchange rates, the acquisition values Evoke at approximately $326million.
The deal has been structured as an all-share arrangement, although shareholders will have access to a partial cash alternative capped at around £117million.
A consortium of private lenders has committed approximately £889million in financing to support the acquisition and refinance Evoke's existing debt obligations.
TPG Credit is leading the lending group alongside Oaktree and OHA as part of the refinancing package backing the takeover.
Evoke also owns 888 sport
| GETTYThe funding arrangement forms a central part of the transaction and is expected to provide Evoke with what company executives described as a more sustainable capital structure.
Both firms said recent regulatory changes within the UK gambling market had accelerated consolidation pressures across the sector.
Rising taxes on betting operators alongside intensifying competition have created what the companies described as an "opportunity for consolidation".
Evoke has already begun restructuring its UK operations following changes to gambling duties introduced earlier this year.
The bookmaker confirmed in April that it would close approximately 270 William Hill betting shops as operators across the sector faced increasing financial pressure from higher levies.
Remote gaming duty doubled to 40 per cent from the beginning of April, significantly increasing costs for gambling operators.
Bally's Intralot said the acquisition would strengthen its position in regulated UK and European gambling markets through access to Evoke's retail operations and digital betting platforms.
Mark Summerfield, evoke chairman, said: "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.
Bally's Las Vegas casino
|GETTY
"I'm confident Intralot will be a strong and supportive owner of the business, and together with the more sustainable capital structure, the combination offers the best route to deliver long-term value for our shareholders and broader stakeholders."
The deal combines Bally's Intralot's lottery and gaming technology operations with Evoke's established betting brands, including William Hill and 888.
Bally's Intralot operates across five continents spanning markets in the Americas, Australasia and Africa, employing approximately 2,740 staff worldwide.