Churchill Downs completes Exacta Systems acquisition

CDI has completed its previously-announced purchase of Exacta Systems for $250m.

US.- Churchill Downs Incorporated (CDI) has announced that it has completed its previously-announced purchase of Exacta Systems, a provider of technology to support historical horse racing (HHR) operations, for $250m in cash. The transaction is subject to certain working capital and other purchase price adjustments.

Through Exacta’s ownership of Colonial Downs Racetrack and Rosie’s Gaming Emporium historical racing machine (HRM) facilities, the transaction will enable CDI to realise synergies related to the company’s Virginia operations. It intends to realise additional operational improvements over time through the diversification of games available at its HRM facilities.

Exacta will operate within the company’s TwinSpires segment and will continue to offer its portfolio of third-party HHR operators in Kentucky, Wyoming, and New Hampshire.

Churchill Downs Incorporated (CDI) reported record revenue for the second quarter of 2023. However, net income dropped compared to last year.

The company’s live and historical racing and gaming segments achieved new adjusted EBITDA highs, helping CDI achieve a new record in overall adjusted EBITDA. Net revenue for the quarter was $768.5m, up 32 per cent year-over-year in comparison to Q2 2022’s $582.5m.

Churchill Downs Racetrack will resume live racing for the scheduled meet on September 14. The meet will take place following a temporary suspension of racing operations to conduct an internal safety review.

Racing was suspended in June after a number of horse injuries, including 12 fatalities. Although no factor was identified as a potential cause, CDI relocated races in order to conduct a review of safety and surface protocols.