Score Media and Gaming Inc. (NASDAQ: SCR) has revealed that it has inked a definitive agreement with Penn National Gaming, Inc. (NASDAQ: PENN). As per the agreement, Score Media will be bought by Penn National Gaming Inc for nearly US$2.0 billion in cash and stock transaction.
Penn National expects that the purchase of the Score will offer adjusted EBITDA growth by Year 2, an incremental $200mm+ medium-term adjusted EBITDA, and $500mm+ of incremental long-term adjusted EBITDA upside. The purchase of the Score will enable Penn National to better handle all critical parts of its technology stack, which leads to greater control over its product development roadmap, lowered costs, and an improved customer experience.
Financial Details
As per the agreement, the Score shareholders will get US$17.00 in cash and 0.2398 shares of Penn National common stock for each Score share, which suggests a total buying payment of US$34.00 per the Score share based on Penn National’s 5-day volume-weighted average trading price as of July 30, 2021.
After the execution of the deal, the current Penn National and the Score shareholders will own nearly 93% and 7% respectively, of the outstanding shares of the firm. Moreover, Penn National anticipates financing nearly US$1 billion cash portion of the payment using current cash on its balance sheet.