Penn National Gaming and Score Media and Gaming have reached a definitive agreement whereby Penn National will acquire theScore, a digital media and sports betting and technology company, for approximately US $ 2.0 billion in cash and shares.
Under the terms of the deal, theScore shareholders will receive $ 17.00 in cash and 0.2398 Penn National common stock for each theScore share, resulting in a total purchase consideration of $ 34.00 per theScore share. based on Penn National’s 5-day volume weighted average. 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 of the transaction, current shareholders of Penn National and theScore will own approximately 93% and 7% of the outstanding shares of the Company, respectively. Penn National plans to fund the approximately US $ 1 billion cash portion of the counterparty using existing cash on its balance sheet.
Jay Snowden, President and CEO of Penn National, comments, âWe are thrilled to acquire theScore, which is Canada’s number one sports app and the third most popular sports app in North America. TheScore’s unique multimedia platform and modern, cutting-edge technology are a powerful addition to the reach of Barstool Sports and its popular personalities and content.
âWe are now uniquely positioned to seamlessly serve our customers with the most powerful sports, games and media ecosystem in North America, creating a community that does not currently exist,â he continues. âUsers will benefit from a unique mobile sports betting and iCasino platform with highly personalized betting and enhanced in-game betting opportunities, as well as highly engaging and personalized sports and entertainment content, as well as as scores and statistics in real time. We believe this powerful new flywheel will result in top notch engagement and retention.
âIt’s important to note that the transaction paves the way for us to take full control of our own technology stack,â he adds. âTheScore has developed a state-of-the-art player account management system and is finalizing the development of an internal platform for risk management and trading services. This should result in significant savings on third-party platform costs and allow us to expand our product offering, providing the missing part to operate at what we believe are the best margins in the industry. In addition to synergies, we will have access to theScore’s vast pipeline of product and engineering talent and data-driven user analytics, which will help us drive our customer acquisition, engagement strategies. , retention and cash flow.
âOperators who have achieved early market share online have done so primarily through first-mover advantage, leveraging existing customer databases and significant marketing spend. We believe long-term winners will be defined by best-in-class products, tailored content, effective customer acquisition, multiplatform reach and broad market access, âconcludes Snowden.
John Levy, CEO of theScore, comments, âThis agreement brings together two companies who share a vision of how media and games intersect, and we couldn’t be more excited to join the Penn National family. I’m proud of theScore team and all of our accomplishments, and believe now is the time to take the next step and align myself with a Penn National company with the resources and scale to accelerate. our activity. We’re excited to partner with Penn to form North America’s most powerful media and gaming company.
âWe have built an innovative, technology-driven integrated games and media company that enables us to be successful across North America, including the highly anticipated upcoming rollout of commercial sports betting in Canada,â continues Levy. âWith Penn’s support, we will continue to invest in growing our Canadian operations, expanding our footprint and expanding our workforce. On a personal note, Benjie and I look forward to continuing to lead theScore under the new combined company.
âWe have been strategic partners of Penn National since 2019 and we have realized that they have the same culture and appreciation of how to grow a business. Jay and his team have done a tremendous job creating an outstanding retail and online gaming platform in partnership with Barstool Sports and we are confident that by combining our leading sports media brand and proprietary technology we consolidate Penn National as a market leader, âconcludes LÃ©vy.
Jon Kaplowitz, Director of Penn Interactive, comments: âThis is a significant milestone for Penn Interactive and Penn National. With the acquisition of theScore, we will have a greater capacity for innovation and to offer a first-rate product to our customers. Personally, I am delighted to join forces with John, Benjie and the rest of theScore team who have proven to be great partners and incredible thought leaders in our industry.
Benjie Levy, President and COO of theScore, comments: âThe combination of theScore and Penn National creates a vertically integrated multi-media and omnichannel gaming company, the first of its kind, that brings together world-class technology, highly engaging sports content and unmatched reach. With our accomplished team in place, this agreement strengthens our ability to grow our already strong North American presence from our base in Canada and further prepares us to capitalize on the enormous upcoming betting opportunity in our home country. . Over time, we have built our loyal user base and our relationship with fans by authentically delivering deeply personalized products. This is an approach that integrates seamlessly with Penn’s current digital strategy and offerings, and will deliver long-term material benefits as we work together for even deeper integration across our platforms.
âThe transaction will provide theScore with immediate scale and resources, the benefits of which will enable employees to better execute the business plan of the combined companies and deliver enhanced integrated product offerings to our customers,â adds Levy. âThe transaction also provides theScore shareholders with immediate liquidity at a substantial premium and an opportunity to participate in any future upsides of the combined company. “