Talarius Plc, the operator of the Quicksilver chain of high street gaming centres, is to be taken over by European Gaming Limited, a specially created company set up by Australian lottery operator Tattersall's and Macquarie Bank.

European Gaming will pay 270 pence per share for Talarius, which values the business at £137.2m. Tattersall's already owns 10.5 per cent of Talarius shares through its George Adams Holdings subsidiary. 

Talarius operates nearly 200 sites across the UK as well as the Cyberslotz online gaming website. The company, which was listed on AIM as a cash shell in 2005, has since completed acquisitions worth a total of £86m.

Talarius management cited the forthcoming smoking ban in England and Wales as one of the main factors behind the deal, and stated that the takeover would ensure the expansion of the business as Talarius turns its attentions towards the rest of Europe. 

Subject to shareholder approval, the deal is likely to be completed by February 2007.