The transaction will provide CDI the opportunity to realise synergies related to the company’s recent acquisition of Colonial Downs Racetrack and Rosie’s Gaming Emporium HRM facilities in Virginia, according to the operator.
Exacta, a provider of technology to support historical horseracing (HHR) operations, integrated a diverse set of historical racing machine (HRM) gaming manufacturers into its HHR platform, including AGS, IGT, Light & Wonder, Everi, Konami and Incredible Technologies.
Exacta supports HHR operations in Virginia, Kentucky, Wyoming and New Hampshire.
Bill Carstanjen, CDI CEO, said: “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.”
Further, for tax purposes, the acquisition will be treated as an asset purchase allowing CDI to realise incremental tax benefits, which will provide additional cash flow and will enhance the overall economics of the transaction.
The transaction will be funded with cash on hand and through the company’s existing credit facility, and it is dependent on various and customary closing conditions, including obtaining required regulatory approvals. The transaction is expected to close in 2023.
In October, Churchill Downs posted a record $163.2m in Q3 adjusted EBITDA – but saw its revenue fall.