Penn National's $2B takeover of theScore now completed

Penn National Gaming has completed the acquisition of Score Media and Gaming Inc., announced the company on Tuesday. The deal was carried out for total consideration of approximately $2.0 billion in cash and stock.

The acquisition of theScore aims at fortifying Penn National’s digital media and gaming strategy, explains the Pennsylvania-based casino operator in a press statement. The company has now created “a complete one-stop entertainment destination.”

Given theScore’s status as the third most popular sports media app in North America and number one in Canada, Penn National believes that by adding its fully integrated media and betting platform, as well as its cutting-edge technology, it will further strengthen its existing ecosystem and ability to seamlessly serve its customers.

Pairing theScore with Barstool Sports will provide Penn National with two of North America’s “most powerful and unique sports media assets,” giving the company the capabilities to generate best-in-class 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,” said Jay Snowden, President and CEO of Penn National Gaming. “We look forward to entering the Canadian gaming market, which represents a compelling new opportunity.”

“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,” said John Levy, Chairman and Chief Executive Officer of theScore. “There is a 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.”

Following the acquisition, the combined company is also expected to be well-positioned to continue growing its business across North America. This includes the expected opening of sports betting and iGaming in Ontario later this year.

The theScore acquisition was previously announced by Penn National in August, the same month in which the deal received approval from the Minister of Canadian Heritage under the Investment Canada Act. theScore is Canada’s top sports app, where single-event wagering has recently become legal.

theScore shareholders approved Penn National's takeover earlier this month, with a vast majority of votes in favor accounting for 99.96%. The arrangement closed on October 19, following approval from the Supreme Court of British Columbia.

“We anticipate that the acquisition of the Score will provide adjusted EBITDA accretion by Year 2, an incremental $200 million medium-term adjusted EBITDA, and $500 million of incremental long term adjusted EBITDA upside,” said Snowden earlier this year.