On Monday, Churchill Downs Incorporated revealed it has come to a definitive agreement to acquire in full the outstanding interests in Exacta Systems, a leading provider of solutions and technology used for operating historical horse racing (HHR) businesses.
Churchill Downs to Acquire Remaining Interest in Exacta
The newly announced definitive agreement has a price tag of $250 million. CDI explained that the purchase will be funded via cash on hand or through the company’s credit facility. Acquiring the remaining interests in Exacta will enable the company to benefit from newly created synergies. At the same time, the new deal complements CDI’s recent takeover of Rosie’s Gaming Emporium and Colonial Downs Racetrack historic racing machine (HRM) operations in Virginia.
Without any doubt, Exacta is the perfect fit for Churchill Downs, considering its leading technology. The new deal will also help the company diversify its offering, considering that Exacta has implemented content from leading operators such as IGT, Light & Wonder and Everi, among others, to its HHR operations. In addition, CDI will benefit from a presence in states where Exacta has already established its operations such as New Hampshire, Virginia, Wyoming and Kentucky.
CDI revealed that for “tax purposes, the acquisition will be treated as an asset purchase allowing CDI to realize incremental tax benefits, which will provide additional cash flow and will enhance the overall economics of the transaction.” It is important to mention that the acquisition is subject to the necessary regulatory approvals and other customary conditions. According to CDI, the transaction is expected to be finalized next year.
The Company Remains Committed to Grow Further
Bill Carstanjen, CDI’s chief executive officer, shared his excitement saying that Exacta helped support historical horse racing operations in the US for years. He added that the acquisition will help expand Exacta’s presence. Finally, Carstanjen said that the collaboration will be “diversifying the game offerings available to players at HRM facilities around the country.”
“For nearly a decade, Exacta has been a creative force supporting the growth of historical horse racing in the US.“
Bill Carstanjen, chief executive officer of CDI
The recent announcement comes on the heels of an important appointment announced by CDI. Last week, the company expanded its Board by adding the human resources expert Andréa Carter. By joining CDI’s Board, the number of members increased to a total of nine. Carter brings a wealth of experience which she will leverage to help the company to continue growing. Her term as a Class II member of the Board is set to expire in 2025.