In a notable move within the gaming industry, **Accel Entertainment**, a prominent distributed gaming operator in the United States, has announced its agreement to acquire **Fairmount Holdings**, the owner of **FanDuel Sportsbook & Horse Racing**. This strategic acquisition, valued at **$35 million**, involves payment through 3.45 million shares of Accel Class A-1 common stock. The deal is poised to significantly enhance Accel’s footprint in the American gambling landscape by integrating a promising single-site racetrack and future casino into its portfolio.
The acquisition aligns seamlessly with Accel Entertainment’s long-term financial goals, offering high return growth at accretive margins. The upfront buildout costs will be financed through the company’s existing revolver facility. With **Fairmount Holdings** generating **$29 million** in revenue last year, Accel has ambitious plans to boost this potential by investing an additional **$85-95 million** in constructing a temporary and then a permanent casino, along with improvements to the racetrack. The move promises to complement Accel’s steadily growing route-based operations, establishing these new assets as a cornerstone of their local gaming platform. The agreement, already approved by both companies’ leaderships, is expected to close in Q4
The acquisition aligns seamlessly with Accel Entertainment’s long-term financial goals, offering high return growth at accretive margins. The upfront buildout costs will be financed through the company’s existing revolver facility. With **Fairmount Holdings** generating **$29 million** in revenue last year, Accel has ambitious plans to boost this potential by investing an additional **$85-95 million** in constructing a temporary and then a permanent casino, along with improvements to the racetrack. The move promises to complement Accel’s steadily growing route-based operations, establishing these new assets as a cornerstone of their local gaming platform. The agreement, already approved by both companies’ leaderships, is expected to close in Q4 2024.
The strategic acquisition reflects Accel Entertainment’s unwavering commitment to expanding its presence and capabilities within the gaming and betting sectors. Wells Fargo lent its expertise as the exclusive financial advisor for this deal, while legal counsel was provided by Lewis Rice for Fairmount and Will & Emery for Accel Entertainment. Andy Rubenstein, co-founder, president, CEO, and director of Accel Entertainment, expressed his enthusiasm regarding the partnership with Fairmount’s leadership, emphasizing the creation of thrilling gaming, betting, and racing experiences.
Rubenstein acknowledged the
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