Churchill Downs Incorporated (CDI) is taking significant steps to bolster its presence in the thrilling realm of historical horse racing (HHR). They have reached an agreement to purchase Exacta Systems, a prominent supplier of technological solutions for HHR ventures. This strategic acquisition will entail an expenditure of $250 million for CDI, subject to potential modifications based on elements such as working capital.
This purchase represents a particularly astute maneuver for CDI, as it generates exceptional synergy with their recent acquisition of Colonial Downs Racetrack and Rosie’s Gaming Emporium HRM establishments in Virginia. By incorporating Exacta, CDI can utilize their state-of-the-art HHR framework, which seamlessly interfaces with renowned historical horse racing machine (HRM) game developers like AGS, IGT, Light & Wonder, Everi, Konami, and Incredible Technologies.
Exacta’s influence encompasses HHR operators across multiple states, including Virginia, Kentucky, Wyoming, and New Hampshire. This acquisition will enable CDI to penetrate these markets and deliver an even more varied and captivating gaming experience to patrons.
Bill Carstanjen, CEO of CDI, conveyed his excitement regarding the acquisition, remarking that Exacta has been a catalyst in the expansion of the HHR sector within the United States for almost a decade. He posits that by broadening Exacta’s reach and enhancing the game offerings at HRM facilities nationwide, CDI can solidify its standing as a frontrunner in this dynamic and swiftly evolving market.
The acquisition will be handled as an asset purchase for tax purposes, affording CDI supplementary tax advantages and augmenting the overall financial allure of the transaction.
The iconic racetrack, Churchill Downs, has announced the acquisition of Peninsula Pacific Entertainment. The purchase, financed through a combination of internal funds and borrowed capital, is expected to close later this year. This move comes on the heels of a recent dip in Churchill Downs’ earnings, despite the company reporting record-breaking profits in the fall.