The provider's CEO said he "respectfully disagrees" with Penn’s long-term view on vertical integration
Kambi signed a long-term partnership agreement with Penn National Gaming in 2019. Following the operator's acquisition of Score Media & Gaming announced Thursday, Kambi's CEO and co-founder stated theScore "has yet to develop a proprietary sportsbook, and certainly not one to a similar high standard as what we offer." After Penn National’s announcement Thursday on the acquisition of Canadian sports betting app, the Score Media & Gaming Inc (theScore), Kambi Group released a statement on the same day regarding the status of its existing agreement with the Pennsylvania-based operator, and said there should be "no financial impact" on Kambi for the guaranteed term of the contract.
In 2019, Kambi signed a long-term partnership agreement with Penn National Gaming which, according to the company’s statement, “remains unaffected by today’s news” and underscores that “there should be no financial impact on Kambi for the guaranteed term of the contract”.
Kristian Nylén, Chief Executive Officer and Co-Founder of Kambi, commented on the newly inked deal between Penn and the Canadian company.
“I congratulate Penn National Gaming on today’s acquisition of theScore. While I respectfully disagree with Penn National Gaming’s long-term view on vertical integration, the entity they have acquired has yet to develop a proprietary sportsbook, and certainly not one to a similar high standard as what we offer. The transaction announced today creates some exciting opportunities for Penn National Gaming and I look forward to working with them over the coming years in support of their sportsbook growth”.
Per the terms of the new agreement anounced Thursday, Penn National is acquiring the company for $2 billion in cash and stock options.Penn National also backs the Barstool Sports app, which it purchased in 2020 for $450 million. In a statement, Penn National CEO Jay Snowden said theScore acquisition allows the company to obtain the company’s in-house technology.
The transaction has been unanimously approved by the boards of directors of both companies and is currently expected to close in the first quarter of 2022.