Penn National gets key Canadian Govt. approval for theScore acquisition | Yogonet International
Investment Canada Act

Penn National gets key Canadian Govt. approval for theScore acquisition

Jay Snowden, Penn National Gaming CEO.
2021-10-07
Canada
Reading time 1:33 min
After having secured approval from the Minister of Canadian Heritage, now the $2 billion acquisition is expected to be closed on October 19, 2021. It is subject to approval from theScore's shareholders at a special meeting on October 12, and receipt of a final order from the Supreme Court of British Columbia.

Penn National Gaming has received approval from the Minister of Canadian Heritage under the Investment Canada Act for its acquisition of Score Media and Gaming, announced the companies on Thursday.

The theScore acquisition is now expected to be closed on October 19, 2021. It is subject to approval by theScore’s shareholders at a special meeting, receipt of a final order from the Supreme Court of British Columbia, and “satisfaction or waiver of the other conditions” contained in the arrangement agreement.

The meeting is scheduled for Tuesday, October 12, 2021 at 11:00 a.m., Toronto time. The company will be holding the meeting in a virtual-only format, in which registered shareholders and duly appointed proxyholders will be able to submit questions on procedural matters and vote.

Penn National’s agreement to acquire Canadian sportsbook theScore was announced in August, for a total of $2 billion in cash and stock. The company is the top sports app in the country, where single-event wagering has recently become legal.

Penn National Gaming expects to create North America’s “leading digital sports content, gaming and technology company” by adding theScore’s modern technology and betting platform to the Barstool Sports audience, which the company acquired last year.

“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,” said Penn National CEO Jay Snowden earlier this year.

The transaction has been unanimously approved by the boards of directors of both companies. Upon completion of the transaction, current Penn National and theScore shareholders will hold approximately 93% and 7% respectively of the company’s outstanding shares.

"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,” added Snowden. “We believe this powerful new flywheel will result in best-in-class engagement and retention."

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