NEWS
Churchill buys AmericaTAB, BRIS, TSN
Posted: Tuesday, June 12, 2007 11:43 AM
by Pete Denk
Churchill Downs Inc. has purchased AmericaTAB, Bloodstock Research Information Systems (BRIS), and the Thoroughbred Sports Network (TSN), along with their related advance deposit wagering companies Winticket.com, BRISbet.com, and TSNbet.com for a total of $80-million.
The acquisitions, actually two separate transactions—one with BRIS/TSN and one with AmericaTAB – were announced Tuesday morning and filed with the United States Securities and Exchange Commission.
“AmericaTAB, BRIS and their affiliates have proven to be some of the most efficiently operated and customer-focused ADW platforms and data services in the industry and will be a great complement to our newly launched TwinSpires account-wagering service,” said Churchill President Robert Evans. “We anticipate the ADW businesses we have acquired should generate approximately $175-million in handle and approximately $43.6-million in revenue in 2008 and to become accretive to earnings in 2008.”
The AmericaTAB sale was for $35.3-million and contains additional earn-out payments of up to $7-million over a five-year period based on handle. AmericaTAB, founded in 1994 as OhioTAB, is owned primarily by Ohio tracks Beulah Park and River Downs. Winticket.com is AmericaTAB’s online wagering service.
AmericaTAB also manages ADW platforms for about a half dozen tracks and companies around the country through its Oregon hub. Churchill will continue that service.
The BRIS sale was for $44.7-million. The Lexington-based company is owned by the Broadbent family. TSN is also owned by the Broadbent family and managed by the same people who manage BRIS. The sale included BRIS’s and TSN’s information services and online betting platforms.
“The rich data provided by these information services will be a tremendous resource to customers of all Churchill Downs-operated ADW platforms, including TwinSpires, and will further distinguish our account wagering services from their competitors,” Evans said. “We also look forward to serving handicappers as well as horse owners, breeders, trainers, and bloodstock experts through the BRIS and TSN data services.”
Happy Broadbent, who previously managed the BRIS family of companies, will join Churchill as a corporate vice president and serve as general manager of the new operations.
“We are excited to become part of North America’s most successful horse racing company, Churchill Downs Inc.,” said Broadbent. “Over the years, the AmericaTAB and BRIS-affiliated businesses have developed very loyal customers, and we want to assure our account holders and data subscribers that the ADW platforms and information services will continue to operate as they have in the past.
“Additionally, we look forward to enhancing all three ADW platforms by offering customers membership, points and privileges through Churchill Downs’s industry-leading Twin Spires Club, as well as offering BRIS and TSN handicapping tools to TwinSpires customers.”
Charles Ruma, founder and president of AmericaTAB and owner of Beulah Park, talked about the decision to sell to Churchill.
“We had grown the system from zero to $235-million in handle last year,” Ruma said. “To see Magna and Churchill in business together with TrackNet Media, to know full well that the ADW business as a whole is changing rapidly and to see the content war that is now going on between Magna/Churchill and TVG…” Ruma said. “We were looking at that and how it would affect our business, where the horsemen are at, the legislatures, and we said it’s time for the big guys to take care of the big business, and this is big business.”
Pete Denk is a Thoroughbred Times staff writer
