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Penn National Acquires the Score for $ 2 Billion

Share Score media and gamesRunning theScore rose more than 60% on Thursday morning. Pen national The company announced that it will acquire the company for $ 2 billion in cash and stock options. Pennation’s stock fell 2% after the market opened.

As Score Media and Gaming is in a position to leverage Canada’s mobile sports betting market, the transaction will extend Pennation’s reach in North America.

Penn National said Shareholders of Score Media and Gaming will receive $ 17 in cash and 0.2398 common shares for each of theScore shares, bringing the total share price to $ 34.00. Penn National predicts that the acquisition will increase adjusted EBITDA growth, medium-term adjusted EBITDA of $ 200 million, and long-term adjusted EBITDA of $ 500 million over a two-year period.

Goldman Sachs and Morgan Stanley advised the transaction.

Penn National also supports the Barstool Sports app, which it purchased for $ 450 million in 2020. In a statement, Penn National CEO Jay Snowden said the acquisition of Score would allow the company to acquire its technology. This allows us to “significantly save third-party platform costs and extend our product offerings, which provides the shortfalls for operating with industry-leading margins.

“In addition to synergies, we will have access to a rich pool of Score product and engineering talent and data-driven user analytics, which will drive customer acquisition, engagement, retention strategies, and cash flow. “I will,” he added.

TheScore moved to its role as a digital-based outlet in 2012 when it sold its broadcast business to Rogers Communications for $ 167 million. We built a sports game and media division and sought to leverage our mobile app user base for a competitive sports betting business. The company released a score betting app for mobile betting in 2019 and made its debut on the Nasdaq this year.

Score Media and Gaming will ring the opening bell on March 16, 2021 at the Nasdaq.

Nasdaq

in the meantime Discuss the future of theScore In March last year, Chris Lencheski, chairman of private equity consulting firm Phenicia Lencheski, warned that the dollar average to acquire new customers began to weigh on low-capitalized companies and will drive acquisitions and mergers in the next 24-48 months. ..

Score Media and Gaming estimates that the domestic market has grown to $ 5.4 billion and that the Ontario market alone could reach $ 2.1 billion by 2025. Bloomberg, Canada’s sports gambling is primarily limited to horse racing, so Canadians are making illegal bets of over $ 7 billion.

Pen National Revenue for the second quarter of 2021 In a Thursday morning report, quarterly revenue was $ 1.5 billion.

Snowden will appear on CNBC’s “Halftime” on Thursday.

Penn National Acquires the Score for $ 2 Billion

Source link Penn National Acquires the Score for $ 2 Billion

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