Canadian digital media innovator Score Media and Gaming Incorporated has announced the signing of a definitive agreement that is to see it become part of American land-based casino operator Penn National Gaming Incorporated.
The Toronto-headquartered firm used an official press release to proclaim that the arrangement is destined to create ‘North America’s leading digital sports content, gaming and technology company’ while simultaneously fortifying the ‘bespoke digital media and gaming strategy’ of its new parent to inaugurate ‘a complete one-stop destination’.
Score Media and Gaming Incorporated was established by its current Chairman and Chief Executive Officer, John Levy (pictured), in 2012 and currently offers its mobile-friendly theScore Bet sportsbetting service to punters in the American states of New Jersey, Colorado, Indiana, Illinois and Iowa. However, the Toronto and Nasdaq-listed enterprise recorded a net loss of about $53.88 million for the nine months to the end of May despite experiencing a rise of 12.7% year-on-year in associated net revenues to almost $16.45 million.
Marketing itself under the colloquial moniker ‘theScore,’ Score Media and Gaming Incorporated asserted that the coming merger is destined to involve its theScore Bet advance becoming a fully integrated part of Penn National Gaming Incorporated’s existing ecosystem for ‘best-in-class engagement and retention’ while providing its new parent ‘with full ownership of the product roadmap.’ The company disclosed that the amalgamation will moreover lead to at least $160 million in medium-term adjusted earnings before interest, tax, depreciation and amortization as well as up to $400 million in longer term gains.
Levy used the press release to declare that his firm’s amalgamation into Penn National Gaming Incorporated is intended to bring two companies together ‘that share a vision for how media and gaming intersect.’ He furthermore pronounced that the envisioned merger will maintain a ‘strong commitment to Canada’ with his family team remaining in charge of all future expansion and operations in the province of Ontario.
Read a statement from Levy…
“I’m proud of ‘theScore’ team and all of our accomplishments and believe the time is right to take the next step and align with a company in Penn National Gaming Incorporated with the resources and scale to accelerate our business. We are excited to join forces with Penn National Gaming Incorporated to form the most powerful media and gaming company in North America.”
Jay Snowden serves as the President and Chief Executive Officer for Wyomissing-headquartered Penn National Gaming Incorporated and he disclosed that the $2 billion cash and stock deal has already been approved by the boards of both companies and is now expected to close sometime during the first quarter of next year. The executive additionally explained that his company will own around 93% of Score Media and Gaming Incorporated following this completion and intends to run the newly-acquired enterprise as a standalone business from expanded offices in Toronto.
Snowden’s statement read…
“We are thrilled to be acquiring ‘theScore,’ which is the number-one sports app in Canada and the third most popular sports app in all of North America. Its unique media platform and modern state-of-the art technology is a powerful complement to the reach of our Barstool Sports advance and its popular personalities and content.”