PlayAGS, Inc. (AGS), a prominent global gaming supplier, has entered into a definitive agreement to be acquired by affiliates of Brightstar Capital Partners, a private equity firm. This agreement values AGS at approximately $1.1 billion, with shareholders receiving $12.50 per share in cash, which is a 41% premium over the average share price of the last 90 days and a 40% premium over the closing price on May 8, 2024. AGS’s diverse product suite, which includes slot products, table products, and online casino content, has cemented its role in the gaming industry. The acquisition by Brightstar is expected to bolster AGS’s resources, enabling further investment in R&D, talent, and innovative offerings, potentially expediting global expansion. David Lopez, CEO of AGS, has stated the transaction will begin an exciting new phase for AGS’s commitment to providing premium gaming solutions. Andrew Weinberg, Brightstar’s Founder & CEO, along with Partner Roger Bulloch, expressed their belief in AGS’s strong pipeline and notable industry presence, anticipating considerable growth post-acquisition. Advisors to the deal include Macquarie Capital and Cooley LLP for AGS, and Jefferies LLC, Barclays, Citizens JMP Securities, and Kirkland & Ellis LLP for Brightstar. Concurrently, AGS has canceled its conference call for Q1 2024 financial results and will not be issuing an earnings release due to the proposed transaction, although it will be filing its Q1 results with the SEC. The transaction, anticipated to close in the second half of 2025, is contingent upon customary closing conditions, including regulatory clearances and AGS shareholder approval. Once finalized, AGS will transition to a private company, removing its common stock from public trading. The announcement concludes with a reminder for investors and security holders to thoroughly review definitive proxy statements, once available, for detailed information about the proposed transaction.

Gaming and Casinos, Private Equity,United States