Churchill Downs Incorporated has agreed a deal for the acquisition of Exacta for a cash price of $250m.
Exacta is a tech provider which supports the operations of historical horse racing and horse racing machines and has experience integrating HRMs into HHR platforms including AGS, IGT, Light & Wonder, and Everi.
“For nearly a decade, Exacta has been a creative force supporting the growth of historical horse racing in the US,” said Bill Carstanjen, Chief Executive Officer of CDI.
“We look forward to expanding Exacta’s national footprint and further diversifying the game offerings available to players at HRM facilities around the country.”
Churchill Downs stated that the acquisition will give it the opportunity to ‘realize synergies related to the Company’s recent acquisition of Colonial Downs Racetrack and the Rosie’s Gaming Emporium HRM facilities in Virginia’.
The transaction also comes at a time when HHR is becoming a large part of Churchill Downs’ business.
In its Q3 report, the company reported a 25.6% increase in revenues in the racing segment up to $102.4m from $81.5m just a year ago. Adjusted EBITDA in racing also grew 25.4% to $34.5m.
During Q3 the company acquired Ellis Park, which has 300 HRMs on site, whilst the agreement to acquire Peninsula Pacific Entertainment for $2.75bn, which features six historical racing entertainment venues, displays Churchill Downs’ increasing focus on the historical racing market.
This acquisition of P2E also includes rights in Virginia to develop up to five HRM venues in the state with up to 2,300 HRMs.
Expected to close in 2023, the transaction is subject to working capital and other purchase price adjustments. It is also treated as an asset purchase allowing Churchill Downs to receive tax benefits.