Churchill Downs Incorporated announced on December 19 that it has acquired historic equestrian technology company Exacta Systems for $250 million.
In a CDI release issued after markets closed on Monday, the Louisville-based company said it had signed a definitive agreement to buy back all outstanding equity interests. of Exacta Systems for $250 million in cash, subject to certain working capital and other purchase price adjustments. CDI says the acquisition will provide an opportunity to realize the synergy associated with the company’s recent acquisition Colony Downs and Rosie’s Gaming Emporium HHR facilities in Virginia.
Exacta Systems, the technology provider that powers HHR’s operations, has integrated many of the leading HHR game makers into its platform, including AGS, IGT, Light & Wonder, Everi, Konami and Incredible Technologies . Exacta supports HHR operations in Virginia, Kentucky, Wyoming, and New Hampshire.
“For nearly a decade, Exacta has been the innovative force supporting the growth of historic horse racing in America,” said CDI CEO Bill Carstanjen. “We look forward to expanding Exacta’s national footprint and further diversifying its on-site player (HHR) game offerings across the country.”
For tax purposes, an acquisition will be treated as an asset purchase that will allow CDI to realize incremental tax benefits, which will provide additional cash flow and will improve overall economics. entity of the transaction. The purchase will be financed in cash and through CDI’s existing credit facility. Expected to close in 2023, the transaction is subject to various and customary closing conditions, including required regulatory approval.
This press release has been edited by BloodHorse Staff for content and style.
