WYOMISSING, PA—Weeks after rumors surfaced on discussions between Penn National Gaming Inc. and Pinnacle Entertainment Inc., the two casino operators confirmed Monday that they plan to merge. Penn National has agreed to acquire Pinnacle in a cash-and-stock transaction that's valued at approximately $2.8 billion and which is expected to close in the second half of 2018.

In connection with the merger, Boyd Gaming Corp. has agreed to acquire four Pinnacle properties for a total of $575 million in cash: Ameristar Kansas City and Ameristar St. Charles in Missouri; Belterra Casino Resort in Indiana; and Belterra Park in Ohio. The divestitures are expected to occur immediately prior to the closing of Penn National's Pinnacle acquisition.

“By combining our highly complementary portfolios and similar operating philosophies, we will be able to leverage the strengths of both our companies and create an unparalleled experience for our regional gaming customers, while generating significant value for our shareholders and business partners,” says Penn National CEO Timothy J. Wilmott. “The combined company will benefit from enhanced scale, additional growth opportunities and best-in-class operations, creating a more efficient integrated gaming company.”