It’s been another busy week for Penn National Gaming.
The company completed its previously announced acquisition of Score Media and Gaming (theScore) for US$2 billion in cash and stock. The acquisition will further strengthen Penn National’s existing ecosystem and ability to serve customers Canada sports betting customers seamlessly.
Generating best player engagement
“We’re excited to be creating this powerful new entertainment flywheel that will provide us with multiple growth channels that transcend our current business verticals,” said Jay Snowden, president and CEO of Penn National Gaming.
“We look forward to entering the Canadian gaming market, which represents a compelling new opportunity, and are proud to have John Levy and his family and their entire team bring their best-in-class technology, unique perspective and skillsets to our Penn National family,” concluded Mr. Snowden.
A one-stop entertainment destination, theScore, is number one in Canada and the third most popular sports media app in North America.
Pairing theScore with Barstool Sports will allow Penn National to generate best-in-class engagement. Plus, it will enhance customer acquisition and retention across its media and gaming properties.
“It is a truly exciting time to join Penn National and collaborate with their team to build a highly innovative and first-of-its-kind sports media and gaming company,” said John Levy, chairman and CEO of theScore.
“There is natural alignment between the two companies, and we are perfectly positioned to capitalize on the growing entertainment opportunities across mobile sports media, sports betting and online casino. We believe the combined company is well-positioned to continue growing our business across North America, including the expected opening of sports betting and igaming in Ontario later this year.”
$2b cash-and-stock deal
TheScore’s shareholders previously voted to approve the proposed acquisition of the business by Penn National Gaming.
During a special meeting held on Oct. 12, 99.96% of shareholders voted in favour of the deal. Only 0.04% voted against it.
Back in August, the two entered into a definitive agreement for Penn National Gaming to acquire theScore for US$2b in cash and stock.
As per terms of the agreement, theScore shareholders were to receive US$17 in cash. They also agreed to accept 0.2398 shares of Penn National common stock for each theScore share. It implied a total purchase consideration of US$34 per share.
Approval from the Minister of Canadian Heritage
Before Penn National shareholders voted on the proposed acquisition, the Minister of Canadian Heritage had already approved the proposition. Steven Guilbeault gave Penn National approval under the Investment Canada Act to acquire the Toronto-based operator.
Although initially supposed to close in Q1 2022, the agreement wrapped early today following the BC Supreme Court’s approval.
Under the terms of the transaction, theScore shareholders will hold approximately 7% of the new business. Penn shareholders own the remaining 93%.