Churchill Downs buying online game producer

Churchill Downs Inc. says it has agreed to buy online and mobile game producer Big Fish in a deal worth up to $885 million.

Both companies’ boards have approved the sale, which is pending regulatory approval. Churchill Downs, the parent company of the Louisville track where the Kentucky Derby is held, said the deal is expected to close by the end of the year.

Churchill Downs Inc. CEO Bill Carstanjen said the acquisition gives the company new products, customers, locations and growth opportunities.

The sale includes a base price of $485 million and up to $350 million based on 2015 earnings and a potential bonus of $50 million to Big Fish CEO Paul Thelen. The purchase price will be paid in cash, except for about $15 million paid in Churchill common stock to Thelen.

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