Penn National to acquire Canadian digital gaming technology firm Score Media for $2 billion
NASDAQ-listed and Wyomissing-headquartered Penn National Gaming (PNG) has confirmed that is ready to pay $2 billion in cash and equity to acquire Canadian digital media innovator Score Media & Gaming Incorporated.
The recently signed agreement between the two companies is being seen as the U.S.-based PNG’s bid to capitalize on the approval of single-game wagering in the neighboring country of Canada and to bring gaming technology in-house.
Under the terms of the deal, PNG will pay $17 per share in cash or 0.2398 shares for each share of the Score Media & Gaming Inc., valuing the Toronto-headquartered company at $34 per share. The estimated value represents a roughly 88 per cent premium to the stock’s most recent closing value.
The boards of both companies have already approved the cash & stock deal, which is widely expected to be finalized by the regulators sometime during the first quarter of 2022. Following the completion of the transaction, the American casino operator will own around 93 per cent of the Canadian gaming technology company.
PNG’s chief executive officer (CEO) Jay Snowden also revealed that the American casino operator has plans to run the newly-acquired gaming technology company as a standalone business through expanded offices in Toronto. He stressed that his and his team members were thrilled to acquire ‘the Score,’ which is the number-one sports app in Canada and the third most popular sports app in the entire North America.
When asked for a comment, Snowden said, “We are thrilled to be acquiring ‘the Score’. Its unique media platform and modern state-of-the art technology is a powerful complement to the reach of our Barstool Sports advance and its popular personalities and content.”
Even before signing the acquisition deal, PNG owned a minority stake in the Canadian gaming company. As per available information, the American company owned only a minority 4.7 per cent stake.
With the latest acquisition, PNG joins an increasing list of online casino and sports wagering services providers seeking vertical integration to improve business and reduce costs by moving technology development in-house.
The newly-signed cash & stock deal for the Canadian gaming company is PNG’s largest in the sports betting arena. It easily dwarfs the American operator’s $163 million cash & stock deal that it signed in January last year to acquire 36 per cent of Barstool Sports.
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