The renowned Churchill Downs Incorporated is diving headfirst into the realm of historical horse racing (HHR) with a major purchase. They’ve inked a deal to acquire Exacta Systems, a firm celebrated for its innovative technology in this dynamic sector of the gaming world. The agreement is valued at a substantial $250 million, subject to certain modifications contingent upon factors like Exacta’s financial standing at the time of finalization.
This strategic maneuver positions Churchill Downs to harness the capabilities of Exacta’s HHR platform across their current and prospective properties, encompassing recent additions in Virginia such as the Colonial Downs Racetrack and Rosie’s Gaming Emporium.
Exacta’s system has already garnered player acclaim, linking them to a diverse array of HHR games from prominent developers like IGT and Konami. Their operations currently span several states, including Virginia, Kentucky, Wyoming, and New Hampshire.
Churchill Downs’ Chief Executive Officer, Bill Carstanjen, views Exacta as an industry trailblazer in the HHR space and is enthusiastic about the prospects of broadening their footprint nationwide, offering players an even more exhilarating range of gaming choices.
Furthermore, the transaction is structured to provide tax advantages for Churchill Downs, enhancing its appeal as a shrewd investment. This translates into increased cash flow for the company and a boost to the deal’s overall worth.
The iconic racetrack, Churchill Downs, is making a significant play by acquiring another firm utilizing its existing funds and a loan. While the specifics remain confidential at present, the transaction requires regulatory approval and is projected to finalize later this year.
This development follows closely on the heels of Churchill Downs reporting all-time high profits (EBITDA) of $163.2 million in their latest quarterly statement, despite a minor decrease in their overall income. It appears they are placing a substantial wager on this purchase!