Penn National Knows theScore
Following its January 2020 acquisition of a 36 per cent stake in sports media publisher Barstool Sports for US$163 million (£119m/€140.6m), the Wyomissing, Pennsylvania-headquartered company has bought Toronto-based Score Media and Gaming in a stock and cash deal worth US$2 billion (£1.46bn/€1.72bn).
Penn, crucially, will pick-up theScore’s four million unique users and expand its market footprint in Canada.
The American gambling operators have agreed to pay Score stakeholders the equivalent of US$34 a share, in cash and stock (£24.85/€29.33).
With Barstool now running new sportsbooks in the U.S. states of Pennsylvania, Michigan and Illinois, the deal adds natural synergy to Penn’s expansion into iGaming.
Most importantly, Penn will also acquire theScore’s proprietary gaming software, the so-called “missing piece” in their bid to forge an industry-leading iGaming and sportsbook leader.
“The transaction provides us with a path to full control of our own tech stack,” said Penn’s Chief Executive Jay Snowden.
“TheScore has developed a state-of-the-art player account management system and is finalizing the development of an in-house managed risk and trading service platform,” he said.
The transaction has been unanimously approved by the boards of both companies.
Score Media was started by its Chief Executive John Levy in 2012 after he sold his cable TV channel for US$131 million (£95.75m/€113m).
Levy will remain in place after the deal is finalised, it’s reported.
Although Penn National Gaming shareholders are yet to vote on the proposed acquisition, the deal has already been approved by Canadian regulatory authorities and, say company sources, could close as early as next week (October 19).