Penn National Gaming Inc. said Monday it agreed to buy Pinnacle Entertainment Inc. in a deal valued at $2.8 billion. Under terms of the deal, Pinnacle shareholders will receive $20.00 in cash and 0.42 shares of Penn National shares for each Pinnacle share they own. Based on Friday’s closing prices, that values Pinnacle shares at $32.47 each, which is 4.9% above Friday’s closing price of $30.95. The per-share bid would give Pinnacle a market capitalization of $1.87 billion. As part of the deal, Penn National agreed to sell Pinnacle’s gaming operations in Missouri, Indiana and Ohio for $575 million in cash. The deal is expected to close in the second half of 2018. Shares of both Penn National and Pinnacle are halted for news until 7:30 a.m. ET. Shares of both companies have more than doubled year to date, while the S&P 500 has gained 19.5%.
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