Recently, Penn National Gaming (PENN) announced the acquisition of theScore (SCR). The acquisition would create the most powerful ecosystem of sports, gaming, and media in North America.
On Aug. 5, Penn National Gaming announced that it reached an agreement with Toronto-based Score Media and Gaming to buy theScore, a digital media, sports betting, and technology company, for $2 billion in cash and stock options.
theScore is Canada’s No. 1 sports app.
theScore is the number one sports app in Canada and the third-largest in North America. Users of the app spend over 113 minutes per month on the app to get live scores, news, stats, and betting information on their favorite teams, leagues, and players. Its sports betting app, “theScore Bet,” enables users to place wagers in New Jersey, Colorado, Indiana, and Iowa.
Penn National and theScore have been strategic partners since 2019. The acquisition will give Penn National access to theScore’s in-house technology and help it grow its presence across North America, officials say.
theScore’s media platform and technology will complement Penn Nationals’ Barstool Sports app, which the company bought last year for $450 million.
“We are now uniquely positioned to seamlessly serve our customers with the most powerful ecosystem of sports, gaming and media in North America, ultimately creating a community that doesn’t currently exist,” said Jay Snowden, the president and CEO of Penn National. "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."
theScore shareholders will receive $34 in cash and stock for their shares.
Under the terms of the agreement, theScore shareholders will receive $17 in cash and 0.2398 shares of Penn National common stock for each theScore share they own, which puts the total share price at $34. The acquisition is expected to close in the first quarter of 2022.
Penn National anticipates that the acquisition of theScore will provide adjusted EBITDA growth in two years of an incremental $200 million medium-term adjusted EBITDA and $500 million of incremental long-term adjusted EBITDA upside.
theScore stock skyrockets after the acquisition announcement.
Score Media and Gaming made its debut on Nasdaq in March 2021. After the acquisition was announced, Score Media and Gaming shares jumped up over 75 percent.
theScore anticipates an upcoming rollout of commercial sports betting in Canada. Currently, horse racing is the only sports gambling that Canadians have access to. However, that hasn’t stopped them from wagering on sporting events. Bloomberg reports that over $7 billion of illegal wagers are placed by Canadian residents.
“This deal bolsters our ability to grow our already strong North American presence from our base in Canada and primes us even further to capitalize on the huge upcoming betting opportunity in our home country,” said Benjie Levy, the president and chief operating officer of theScore.
How to buy stock in theScore or Penn National
On Aug. 5, SCR shares are trading on Nasdaq at just over $32 per share. PENN is also listed on Nasdaq and is trading at almost $71 per share.
Stock shares of SCR or PENN can be purchased through any traditional broker or online broker like Robinhood.