After months of strategic option assessment, the struggling gambling operator Evoke has finally found a buyer. Bally's Intralot acquired the gambling group, which owns brands such as William Hill and 888, in an all-stock transaction valued at approximately 243 million British pounds. The merged new company will span six core markets, with a total addressable market size of up to 36 billion euros. However, with a combined net debt of over 3 billion pounds on the books of the two companies, the market is still weighing whether the deal is worthwhile.
How the deal was negotiated: The logic behind a 77% premium
According to the agreement, Evoke shareholders will receive 0.537 shares of Bally's Intralot new stock for each Evoke share they hold, with a limited cash alternative offered. This transaction values Evoke at 52 pence per share.
Compared to Evoke's recent stock price, the premium is quite generous: 77% over the volume-weighted average price of 29.4 pence three months before Bally's Intralot disclosed its potential acquisition intentions in April; and even higher at 138% compared to the closing price of 21.9 pence the day before Evoke announced the start of its strategic review on December 9, 2025. Evoke's chairman, Mark Summerfield, frankly stated that this is the "most attractive and feasible" scheme for shareholders.
Upon completion of the transaction, Evoke shareholders will hold about **11.5%** of the new group's shares, provided no one opts for the cash scheme. Bally's chairman Soo Kim also expressed confidence that the transaction "will create substantial benefits for shareholders of both sides." The acquisition is expected to be completed in the fourth quarter of 2026 or the first quarter of 2027, pending regulatory approval.
Aiming for the second spot in the UK, but the tax rate is a big pitfall
The merged group will take the second chair in the UK iGaming industry and rank fourth in online sports betting. Bally's Intralot did not hide its confidence in the UK market in its announcement, calling it an "extremely attractive geographical area" with considerable integration space.
However, it is intriguing that the UK was also the key driver behind Evoke's "forced sale." Regular readers of the PASA website might remember that the UK remote gambling tax jumped from 21% to 40% in April this year. Evoke initiated the strategic review the month after the tax rate increase was announced—plainly speaking, a 40% tax rate is a death knell for operators with thin profits.
Bally's Intralot dared to take over at this point, either because of unique confidence in cost control or a different judgment of the UK regulatory environment.
With 3 billion in net debt overhead, "if someone offers 1 billion, I'll sell"
Spreading out the balance sheets of the two companies, it's not an exaggeration to say "heavily indebted." As of the end of December 2025, Evoke had over 1.86 billion pounds of net debt, and Bally's Intralot had an adjusted net debt of 1.49 billion euros in the same period. Combined, the merged entity's net debt easily exceeds 3 billion pounds.
Ben Robinson, founder of consulting firm Corfai, bluntly stated that this level of debt "has been underestimated." He believes that after the acquisition, Bally's Intralot is likely to reduce leverage by selling off some businesses, with Italy and Mr Green being the most obvious candidates.
However, Bally's Intralot's CEO Robeson Reeves stated in a conference call that there are currently no plans to sell assets. But he didn't rule it out completely, throwing out an interesting statement—"If someone comes with a billion to buy the Danish business, I would definitely sell. Sometimes you say 'I'm not selling,' but when the other party throws an outrageous price, of course, you have to take it." As for Italy, Reeves had a completely different attitude: "Italy is our precious asset, probably one of the last things I would want to sell."
Reeves also calculated a time account: Swallowing Evoke saved Bally's Intralot seven years of effort, stepping into the global business pattern he wanted to build. "We will be second in the UK and not small in other markets, but this planet is still very large, and there are plenty of places to expand." He spoke very straightforwardly—the sources of income need to be diversified, and where to invest money next needs careful calculation, but the direction is clear: this acquisition is a springboard for further expansion.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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