Penn National Keeps Expanding With Billion-Dollar Acquisition

Penn National Gaming, Inc. (NASDAQ:PENN) just announced the purchase of Canada-based Score Media and Gaming (SCR) -- a firm that specializes in sports betting and digital media. The deal is worth nearly $2 billion, and under its stipulations, shareholders of Score will receive $17 in cash and 0.2398 shares of Penn National Gaming per share held of Score, amounting to a per-share value of $34. Penn National's Chief Executive Jay Snowden said the agreement will likely help the company save on third-party platform costs and allow it to expand its product offerings. 

The shares are taking a step back today, off 4.2% at $63.48 this morning, though support near the $63 level, which PENN staged a bounce from late last month, could contain some of today's pullback. And while PENN has cooled significantly from its March 15 record peak, it still boasts a roughly 77% year-over-year lead. 

We noted last week that PENN was oversold, which could work in the stock's favor, with a short-term bounce potentially on the horizon. This is per the equity's Relative Strength Index (RSI) of 36.