Penn Nationwide Gaming Inc. has agreed to purchase Canadian sports activities media firm Rating Media & Gaming Inc. for $2.2 billion in money and inventory.The businesses, which shaped a strategic partnership in 2019, have each regarded to achieve floor in North America’s fast-growing sports activities betting trade.The Toronto-based firm’s theScore app is the highest sports activities app in Canada and the third most-popular in North America. Penn Nationwide operates 44 casinos and racetracks throughout the continent, a lot of them below the Hollywood On line casino model, and has a 36 per cent stake in Barstool Sports activities. As a part of the deal, Rating shareholders will obtain $17 (U.S.) in money and 0.2398 of a Penn Nationwide share for every Rating share, or $32.88 a share primarily based on Wednesday’s shut. The businesses valued the deal at about $2 billion.“We at the moment are uniquely positioned to seamlessly serve our prospects with probably the most highly effective ecosystem of sports activities, gaming and media in North America, finally making a group that doesn’t presently exist,” Penn Nationwide chief government officer Jay Snowden mentioned in a press release Thursday morning.Rating surged 56 per cent to $28.33 (Cnd) at 9:37 a.m. Thursday in New York after climbing as a lot as 63 per cent, probably the most intraday since November. Penn Nationwide fell 1.2 per cent to $65.44 (U.S.).The merger comes as Canada strikes to legalize single-event sports activities betting. In June, Ottawa handed Invoice C-218, the Secure and Regulated Sports activities Betting Act, which supplies authority to the provinces to license and regulate sports activities betting.Till now, Canadian bettors had been solely allowed to wager on two or extra video games.“We’ve constructed an revolutionary, technology-led built-in media and gaming enterprise that has us poised for achievement throughout North America, together with the extremely anticipated upcoming rollout of economic sports activities betting in Canada,” mentioned John Levy, CEO of theScore. “With Penn’s assist, we’ll proceed to put money into constructing our Canadian operations, rising our footprint and increasing our workforce.”With information from Bloomberg JOIN THE CONVERSATION Anybody can learn Conversations, however to contribute, try to be registered Torstar account holder. If you don’t but have a Torstar account, you possibly can create one now (it’s free)Signal InRegisterConversations are opinions of our readers and are topic to the Code of Conduct. The Star doesn’t endorse these opinions.