Accel Entertainment To acquire Fairmount Holdings, Owner Of FanDuel Sportsbook & Horse Racing In Collinsville, Illinois For Total Consideration Of ~$35M

Accel Entertainment, Inc. (NYSE:ACEL) and Fairmount Holdings, Inc. today announced that the companies have entered into an agreement for Accel to acquire Fairmount, the owner of FanDuel Sportsbook & Horse Racing, for total consideration of approximately $35 million (based on a 20-day trailing average), payable to the sellers as 3.45 million shares of Accel Class A-1 common stock. The strategic transaction adds a promising single-site racetrack and future casino to extend Accel's convenience gaming expertise to a larger and more concentrated venue – an adjacency in Local Gaming that is complementary to Accel's steadily growing, route-based footprint.

During the year ended December 31, 2023, Fairmount generated $29 million of revenue and modest Adjusted EBITDA. Accel plans to invest $85 - $95 million (over and above the purchase price) to fund temporary and then permanent casino construction and modest track investments. Accel's five-year forecast suggests an Adjusted EBITDA potential of $20 to $25 million and over 75% free cash flow conversion1 – pointing to a compelling cash flow return on capital. The asset will be the cornerstone in a local gaming platform that builds on Accel's capabilities and strengths as a leading route-based operator.