Churchill Downs Incorporated has finalised its previously disclosed acquisition of Exacta Systems for a total consideration of $250m, subject to certain working capital and other purchase price adjustments.
It is hoped that the transaction will allow the casino and entertainment operator to enhance recent acquisitions made in the world of horse racing, as well as realising “significant and immediate” synergies related to CDI’s Virginia operations. This includes the region’s Colonial Downs Racetrack and Rosie’s Gaming Emporium facilities.
Furthermore, as a result of the transaction, which was funded with cash on hand and via the company’s existing credit facility, CDI also expects to achieve additional operational improvements through the diversification of games available at its historical racing machine facilities.
Exacta will operate within the company’s TwinSpires horse racing segment and will continue to service its growing portfolio of third-party HHR operators in Kentucky, Wyoming, and New Hampshire.
The company has integrated a number of HRM developers into its platform including AGS, IGT, Light & Wonder, Everi, Konami and Incredible Technologies.
As the group first detailed the purchase in December 2022, Chief Executive Officer Bill Carstanjen 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.”
Last month, CDI declared record Q2 net revenue for the quarter of $768.5m, up 32 per cent year-over-year in comparison to Q2 2022’s performance of $582.5m, following significant gains across the live and historical racing and gaming divisions.
This was helped along by 2022’s $2.48bn acquisition of substantially all of the assets” of Peninsula Pacific Entertainment that was first detailed in February and comprises interests within Virginia and New York, as well as the operations of Illinois’ Hard Rock Hotel & Casino in Sioux City.
