Penn National Buys theScore in a $2B Deal
Penn National Gaming has entered into a $2 billion deal to acquire Toronto-based Score Media and Gaming, which owns theScore, according to news released Thursday. The purchase will allow Penn National – the owner of Barstool Sports – to strengthen its footprint in the Canadian sports betting market.
The approximately $2 billion worth of transaction in cash and stock has been unanimously approved by the board of directors of both companies and is likely to close in the first quarter of the next year.
theScore, which is one of Canada’s most downloaded sports app, is also functional in the US sports betting market in New Jersey, Indiana, Iowa, and Colorado.
Key Details of the Deal
When the transaction is closed in early 2022, existing Penn National and theScore shareholders will have approximately 93%, and 7%, respectively, of the company’s shares.
Pennsylvania-based casino company expects to fund the roughly $1 billion cash potion using existing cash on its balance sheet.
President and Chief Executive Jay Snowden said in a press release about the new acquisition:
“When we add the Score’s one-of-its-kind integrated media and wagering platform and modern technology to the huge audience of Barstool Sports … we’ll be creating North America’s leading digital sports content, gaming, and technology company.”
Snowden hoped the latest acquisition would provide adjusted EBITDA accretion by Year 2, “an incremental $200 million medium-term adjusted EBITDA, in addition to $500 million of incremental long-term adjusted EBITDA upside.”
Penn Grabs ‘Canada’s No. 1 Sports App’
Penn National is excited to be acquiring theScore, which is the number one sports app in Canada, Snowden said in a release, adding Canadian sportsbook is also the third-most-popular sports app in the whole of North America.
PNG is now uniquely positioned to serve its customers with the most formidable ecosystem of sports, gaming, and media in North America to create a new community.
Snowden added that users will enjoy unique online sports betting and iCasino platform with highly customized wagers and enhanced in-gaming betting features, in addition to real-time scores and stats.
“We believe this powerful new flywheel will results in best-in-class engagement and retention,” the PNG CEO added.
Penn Targets Upcoming Canada Sports Betting
Chairman and Chief Executive Officer of theScore John Levy said the deal brings the two entities that share a vision for how media and gaming intersect. While being proud of theScore team and all of its accomplishments, Levy noted it was the right time to take the next step and align with a company like Penn National, which has resources and scale to accelerate the business.
He said theScore team is thrilled to join forces with Penn to form the most powerful media and gaming company in the continent.
Levy noted theScore team has built a formidable media and gaming business which makes it well-positioned to be successful across North America. He was referring to the upcoming rollout of commercial sports betting in Canada.
With Penn’s support, theScore will continue to invest in building its Canadian operations, growing its footprint, and expanding its workforce.
Levy added that he and Benjie are looking forward to continuing to head up theScore as part of the new combined company. Benjie Levy is the President and Chief Operating Officer of the Toronto-based sportsbook.
theScore Team Will Remain in Charge
Under the terms of the acquisition deal, the Levy family will remain in charge of theScore of the day-to-day affairs of the company that was formed in 2012.
The key deal comes weeks after the Canadian parliament legalized single-game sports betting, which is set to launch later this year.
Levy said theScore team has come to realize that Penn National – theScore’s partner since 2019 – has the same strong culture and appreciation for how to grow a business.
Penn National plans to keep theScore as a standalone entity with the same brand name, with headquarters in Toronto.