Penn National Gaming, which owns Barstool Sports, announced Thursday that it has entered into a definitive agreement to acquire Toronto-based Score Media and Gaming, owner of theScore, for approximately $2.0 billion in cash and stock.
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 Penn National and theScore shareholders will hold approximately 93% and 7% respectively, of the company’s outstanding shares. Penn National expects to fund the approximately $1 billion cash portion of the consideration using existing cash on its balance sheet.
Jay Snowden, President and Chief Executive spoke in a press release about this new purchase.
“When we add the Score’s unique integrated media and betting platform and modern, state-of-the-art technology to the massive audience of Barstool Sports and its wildly popular personalities and content, we’ll be creating North America’s leading digital sports content, gaming and technology company”, Snowden predicted. “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”.
He added that
“users will enjoy a unique mobile sports betting and iCasino platform with highly customized bets and enhanced in-gaming wagering opportunities, along with highly engaging, personalized sports and entertainment content, and real time scores and stats. We believe this powerful new flywheel will result in best-in-class engagement and retention”.