Penn National Gaming has stressed excitement at “creating this powerful new entertainment flywheel,” after completing the purchase of Score Media and Gaming in an $2bn cash and stock transaction.
The agreement was initially slated for completion during the first quarter of 2022 after first being detailed in August, however, following recent approvals, including that of the Supreme Court of British Columbia, that date has been brought forward significantly.
The deal will see Score shareholders 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 five-day volume weighted average trading price as of July 30, 2021.
Current PNG and Score shareholders will hold approximately 93 per cent and seven per cent, respectively, of the company’s outstanding shares.
John Levy, chair and CEO of theScore, explained: “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.
“There is natural alignment between the two companies, and we are perfectly positioned to capitalise 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.”
PNG says that the acquisition is intended to fortify its digital media and gaming strategy, as the group looks to create “a complete one-stop entertainment destination”.
Furthermore, it is hoped that by pairing its newly purchased entity with Barstool Sports will enable the group to generate heightened engagement and enhanced customer acquisition and retention across its media and gaming properties.
“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,” commented 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 skill sets to our Penn National family.”