Churchill Downs To Buy Big Fish Games

(RTTNews) - Churchill Downs Inc. (CHDN) said Wednesday that it has agreed to buy all of the outstanding stock and equity interests of the privately held Big Fish Games, Inc., a producer and distributor of mobile and online games.

The deal is structured on a cash-free/debt-free basis and is valued at up to $885 million, including a base consideration of $485 million and a potential earn-out payment of up to $350 million based on 2015 Adjusted EBITDA, and a potential bonus payment to the founder and current Chief Executive Officer of Big Fish, Paul Thelen, of $50 million based on 2016 bookings.

The purchase price will be paid in cash, except for about $15 million paid in Churchill Downs common stock to Paul Thelen.

The deal is expected to close by the end of the year.