Penn National to buy sports-betting firm Score Media in $2 billion deal

(Reuters) -Penn National Gaming Inc has agreed to buy Canadian digital media and sports-betting firm Score Media and Gaming Inc in a cash-and-stock deal worth nearly $2 billion, the companies said on Thursday.

Under the deal, Score’s shareholders will get $17 in cash and 0.2398 shares of Penn National for each share held. That implies a per-share value of $34, which represents a premium of nearly 87% to the stock’s last closing price on the Nasdaq.

The deal “should lead to significant savings in third-party platform costs and allow us to broaden our product offerings,” Penn National Chief Executive Jay Snowden said in a statement.

Score will operate as a standalone business based in Toronto, the companies said.

Goldman Sachs & Co and Code Advisors LLC were the financial advisers to Penn National, while Morgan Stanley & Co and Canaccord Genuity Group were the financial advisers to Score.

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