Youbet.com shareholders voted to approve a merger agreement with Churchill Downs Inc., the company announced April 6.
The merger is still subject to various regulatory approvals and other conditions before it closes. CDI and Youbet.com officials have said they expect the deal to close in the second quarter of 2010.
The agreement was first announced in November 2009. If it goes through, CDI would control a large part of the advance deposit wagering market in the United States.
According to a Youbet.com release, 98.4% of shareholders voted in favor of the merger agreement. They represent 68.3% of total outstanding shares in Youbet.com as of Feb. 17.
Under the terms of the transaction, Youbet.com shareholders would receive 0.0598 of a share of CDI common stock and $0.97 in cash for each share of Youbet.com common stock they own. The stock/cash exchange ratio is subject to adjustment in order to ensure that the transaction doesn’t require CDI to issue more than 19.6% of the outstanding CDI common stock as of immediately prior to the effective time of the merger.