Penn National Gaming, Inc. has struck a deal to acquire Toronto-based media and gaming company Score Media and Gaming, Inc. (theScore) for $2 billion USD in cash and stock.
The two companies appear to have reached a definitive agreement, with the boards of directors on both sides unanimously approving the move. The deal is expected to close in the first quarter of 2022, according to a press release on Thursday.
theScore, which has an established foothold in the Canadian sports media space, announced earlier this year that it would start gunning for the U.S. online sports betting market. It looks like theScore’s efforts culminated with the company being purchased by Penn National to create the biggest digital sports and gaming company in North America.
John Levy, Chairman and Chief Executive Officer of theScore, said:
This deal brings together two companies that share a vision for how media and gaming intersect, and we could not be more excited to join the Penn National family. I’m proud of theScore team and all of our accomplishments, and believe the time is right to take the next step and align with a company in Penn National with the resources and scale to accelerate our business. We are excited to join forces with Penn to form the most powerful media and gaming company in North America.
The result of theScore’s integration into Penn National’s existing infrastructure will be a fully decked out one-stop platform for sports entertainment and gaming needs across all of North America.
theScore sold its TV network to Canada’s Rogers Communications a while ago, but it looks like this sale will actually serve to further the digital media and gaming strategy the company had been operating on for years.
Jay Snowden, President and Chief Executive Officer of Penn National, said the following about the acquisition:
We are thrilled to be acquiring theScore, which is the number one sports app in Canada and the third most popular sports app in all of North America. theScore’s unique media platform and modern, state-of-the art technology is a powerful complement to the reach of Barstool Sports and its popular personalities and content.
The purchase will cost Penn National $1 billion USD in cash, as well as $1 billion USD in Penn National common stock, amounting to a total purchase consideration of $34 USD per theScore share. Each theScore shareholder will receive $17 USD in cash, as well as 0.2398 shares of Penn National common stock for every theScore share they hold.
Following the merger, Penn National’s existing shareholders will hold approximately 93% of the company’s outstanding shares, whereas theScore shareholders will hold 7%.