Churchill Downs Incorporated announced Monday that it has entered into a definitive agreement to acquire all outstanding equity interests of Exacta Systems for total consideration of $250 million in cash, to support its Historical Horse Racing operations.
Subject to certain working capital and other purchase price adjustments, the transaction is set to provide CDI the opportunity to realize synergies related to the company’s recent acquisition of Colonial Downs Racetrack and Rosie’s Gaming Emporium HRM facilities in Virginia.
Bill Carstanjen, Chief Executive Officer of CDI, stated: “For nearly a decade, Exacta has been a creative force supporting the growth of historical horse racing in the US. We look forward to expanding Exacta’s national footprint and further diversifying the game offerings available to players at HRM facilities around the country.”
Supporting operations in Virginia, Wyoming, Kentucky, and New Hampshire, Exacta has integrated a number of historical racing machine developers into its platform including AGS, IGT, Light & Wonder, Everi, Konami, and Incredible Technologies.
For tax purposes, he acquisition is to be treated as an asset purchase, providing the company with incremental tax advantages that will provide additional cash flow and enhance the overall economics transaction.
Last month, the company announced the completion of its purchase of substantially all of the assets of Peninsula Pacific Entertainment, for total consideration of $2.75 billion. The P2E acquisition includes all of its assets and operations in Virginia, New York and Sioux City, Iowa.
In a press release, Bill Carstanjen said last month the acquisition marks “a significant moment in the evolution of Churchill Downs Incorporated,” and described the new transaction as meaningful, as it introduces “a very unique set of assets and attractive organic growth opportunities” to the company.
Original article: https://www.yogonet.com/international/news/2022/12/21/65489-churchill-downs-to-acquire-hhr-company-exacta-systems-in-250m-cash-deal
