Penn National Gaming has closed its US$2.0bn cash-and-stock acquisition of Canada-based operator theScore.
Penn announced the deal in August, revealing that it planned to migrate Penn’s betting products to a platform currently being built by theScore.
Penn will pay $17.00 in cash and 0.2398 shares – $17.00’s worth – of its stock for every theScore share, for a total consideration of $34.00 per share. This will mean that theScore shareholders will hold approximately 7% of the new combined business, while current Penn shareholders will hold the remaining 93%.
After receiving approval from the Canadian government and from theScore shareholders, the deal – originally set to close in Q1 of 2022 – has been completed much sooner than was anticipated.
“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,” Jay Snowden, President and CEO of Penn National Gaming, said.
Snowden added that the deal would give Penn access to theScore’s home market of Canada, which first allowed legal betting on single sporting events in August, after a bill to do so was signed into law in July.
“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,” Snowden said.
John Levy, chairman and chief executive of theScore, said the two businesses shared similar goals and would together create a gaming and media giant.
“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,” Levy said. “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.”