London-listed bookie William Hill has settled a dispute over Canadian gambling firm NYX, clearing the way for an American company to swoop in.
Legal action relating to Scientific Games Corp's attempted takeover of NYX has now ceased. William Hill, which had raised objections to the buyout and threatened to block it with its 32 per cent stake, will now support Scientific Games's bid.
Shares in William hill were up more than three per cent this morning.
The deal means Scientific Games, which is listed in New York, will buy William Hill's ordinary and convertible shares in NYX, netting the bookie an estimated £96.5m. An agreement has also been reached over William Hill's relationship with Open Bet, which it had been attempting to safeguard by blocking the merger.
William Hill chief executive Philip Bowcock said: "These agreements safeguard William Hill's technology roadmap and relationship with NYX and end all legal action between the parties."
He recommended that other shareholders in NYX support that takeover bid.
Putting aside their differences, Scientific Games and William Hill will also expand their commercial relationship, ready for a Supreme Court ruling in 2018 which could allow US states to regulate sports betting.
Analyst Alistair Ross at Investec said the agreement was "very good news", calculating that William Hill will receive a seven per cent return on investment over 20 months.