GIBRALTAR — Evoke, formerly known as 888 Holdings, agreed to a £243 million takeover by Bally's Intralot. The acquisition, structured as an all-stock transaction, followed two months of negotiations between the Gibraltar-headquartered company and the Greek casino and lottery operator.

The agreement values shares at 52 pence apiece. This valuation represents a 77 percent premium over the average share price of 29.4 pence for the quarter ending April 17. Following the takeover announcement, shares increased by 15 percent on Friday. The company's share price declined by 90 percent between 2021 and the recent announcement of the takeover.

The company's chair Mark Summerfield stated the agreement represents the most favorable and feasible result for shareholders. Summerfield said the company had focused on maximizing value for shareholders in light of U.K. duty changes and capital structure constraints. The company holds approximately £1.8 billion in net debt. It engaged Morgan Stanley and Rothschild in December to assess strategic alternatives.

The U.K. government announced in November that remote gaming duty would increase from 21 percent to 40 percent. This increase took effect in April. Per Widerström previously stated that gambling tax modifications would cost the company up to £135 million annually.

The company plans to close approximately 200 William Hill betting shops starting in May. It cited increased operational costs and government tax rises as reasons for these planned closures. It purchased William Hill's network of 1,400 high street bookmakers for £2.2 billion in 2021.

Intralot anticipates the agreement will generate substantial benefits for shareholders of both companies, according to Soo Kim. Avi Shaked, who co-founded the business that became Evoke in 1997, and his family hold a 19.2 percent ownership stake in the company and support the merger. Shaked said, "When I founded Evoke 30 years ago, I envisioned building a company that would stand among the world's leading gaming businesses."