SBC News Voice of the Sports Betting Industry
NYSE-listed slot machine manufacturer PlayAGS (AGS) has agreed to “definitive terms” to be acquired by the private equity fund of Brightstar Capital Partners.
This afternoon, the board of AGS unanimously approved and recommended to its investors a $12.50 per share cash offer from Brightstar Capital.
The offer values the AGS’ business at approximately $1.1bn, rewarding company investors with a 41% premium over the firm’s NYSE closing price as of May 8, 2024.
The acquisition will see Brightstar Capital invest in AGS to advance the production of its high-performing slot products and expansive table games portfolio.
“We are very pleased to reach this agreement, which we believe provides our stockholders with compelling, certain cash value. Joining forces with Brightstar represents an exciting new chapter for AGS and our mission to provide exceptional gaming solutions for our operator partners,” said David Lopez, CEO & President of AGS.
“With Brightstar’s resources and strategic guidance, we believe AGS will be well-positioned to make targeted investments in R&D, top talent, operations, and industry-leading innovation, which should accelerate our global footprint,” Lopez added.
London-based Brightstar Capital is a specialist PE fund, with a reported $4.1bn in assets under management. The fund primarily invests in the industrial, manufacturing, and services sectors.
Dealmakers expect to close the acquisition by the second half of 2025, subject to customary conditions, including regulatory approvals and approval of the M&A by a majority of AGS stockholders.
“We look forward to working with David and the AGS team to capitalize on opportunities by taking a long-term approach to creating value,” said Andrew Weinberg, Founder & CEO of Brightstar.
“AGS has a strong pipeline of new products, and we believe the Company’s innovative approach to game development provides significant potential for continued growth,” Weinberg continued.
