Churchill Downs Incorporated is taking a significant step to bolster its position in the profitable historical horse racing (HHR) market. CDI is purchasing Exacta Systems, a top provider of technological solutions for HHR operations, in a transaction valued at $250 million.
This strategic acquisition is especially noteworthy because it enables CDI to capitalize on synergies with its recent purchase of Colonial Downs Racetrack and Rosie’s Gaming Emporium HRM venues in Virginia. Exacta’s system, which incorporates HHR devices from various manufacturers such as AGS, IGT, and Light & Wonder, will be a valuable resource for CDI.
Exacta already maintains a substantial presence in the HHR market, providing services to operators in Virginia, Kentucky, Wyoming, and New Hampshire. CDI CEO Bill Carstanjen commended Exacta’s pioneering role in the HHR industry’s expansion and conveyed enthusiasm about broadening their national footprint. He envisions enriching the gaming experience for patrons at HRM establishments throughout the country.
Structured as an asset acquisition for tax purposes, this move provides CDI with supplementary tax advantages. This action will produce additional cash flow, making the agreement even more financially appealing for Churchill Downs.
The iconic racetrack, Churchill Downs, is making a significant acquisition, leveraging its substantial cash holdings and available credit to purchase another firm. While details remain under wraps pending regulatory approvals, the transaction is anticipated to close later in 2023. This development follows closely on the heels of Churchill Downs announcing all-time high profits for the previous quarter, despite a slight decrease in total income.
