Penn National Gaming has entered into a definitive agreement to purchase Score Media and Gaming for approximately $2bn in cash and stock.
Under the terms of the agreement, Score shareholders will receive $17 in cash and 0.2398 shares of PNG common stock for each share, which implies a total purchase consideration of $34 per each based on a 5-day volume weighted average trading price as of July 30, 2021.
The transaction has been unanimously approved by the boards of directors of both companies and is currently expected to close in the first quarter of 2022.
Upon completion, current PNG and Score shareholders will hold approximately 93 per cent and seven per cent, respectively, of the company’s outstanding shares.
“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,” explained Jay Snowden, president and CEO of Penn National.
“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.
“We are now uniquely positioned to seamlessly serve our customers with the most powerful ecosystem of sports, gaming and media in North America, ultimately creating a community that doesn’t currently exist.
“Users will enjoy a unique mobile sports betting and icasino platform with highly customised bets and enhanced in-gaming wagering opportunities, along with highly engaging, personalised sports and entertainment content, and real time scores and stats.
Adding: “Operators that have achieved early online market share have done so primarily through first mover advantage, leveraging existing customer databases and significant marketing spend.
“We believe the long-term winners will be defined by best-in-class products, bespoke content, efficient customer acquisition, multi-platform reach and broad market access.”
PNG says that the acquisition will permit the firm to better manage all critical aspects of its technology stack, which it asserts will lead to greater control over its product development roadmap, reduced costs, and an enhanced customer experience.
It is also confirmed that theScore will continue to be operated as a stand-alone business, headquartered in an expanded Toronto office, that will continue to be led by the Levy family “with the same operating philosophy that has driven the company’s success to date”.
John Levy, chairman and CEO of theScore, explained, “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.
“We’ve built an innovative, technology-led integrated media and gaming business that has us poised for success across North America, including the highly anticipated upcoming rollout of commercial sports betting in Canada.
“With Penn’s support, we will continue to invest in building our Canadian operations, growing our footprint and expanding our workforce. On a personal note, Benjie and I are very much looking forward to continuing to head up theScore as part of the new combined company.”