Churchill Downs Inc. announced today it has entered into a merger agreement to acquire all of the outstanding shares of Youbet.com Inc.

. The transaction came with a price tag of close to $127 million.

Youbet.com reported handle of $438 million and revenue of $85.8 million in 2008, and has reported $374 million in handle and $70.8 million in revenue through the first nine months of 2009.

Churchill Downs Inc. has identified a projected $10 million in annualized cost savings by combining the two companies. It figured to do so by eliminating the duplicate costs of the operating two public companies, by elimination duplicate sales, general and administrative costs and elimination of the duplicate costs of developing and operating two ADW technology stacks and websites.

For complete details on the announcement, click here.