Penn National to buy Canadian sports betting startup in $2 B

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Aug 5 - Penn National Gaming Inc has agreed to buy Canadian sports betting and video betting startup Score Media and Gaming Inc in a cash and stock deal worth nearly $2 billion.

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

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

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

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