Shares of Score Media and Gaming (NASDAQ: SCR) are surging premarket after it was announced that Penn National Gaming (NASDAQ: PENN) will acquire the company for approximately $2 billion in cash and stock.
SCR or “theScore” is a digital media and sports betting and technology company.
TheScore shareholders will receive $17 in cash and 0.2398 shares of Penn National common stock for each theScore share, representing a total consideration of $34 per theScore share based on Penn National’s 5-day volume-weighted average price as of July 30, 2021.
The deal is expected to close in the first quarter of 2022.
Penn National expects to fund the acquisition’s approximately $1 billion cash portion using existing cash on its balance sheet.
“This deal brings together two companies that share a vision for how media and gaming intersect, and we could not be more excited to join the Penn National family,” said John Levy, Chairman and CEO of theScore.
“We’ve built an innovative, technology-led integrated media and gaming business that has us poised for success across North America, including the highly anticipated upcoming rollout of commercial sports betting in Canada,” continued Levy.
Score Media and Gaming shares are trading at $30.12 premarket, up 66%.
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