AGS (PlayAGS), a leader in the global gaming experience industry, confirmed it entered into a definitive agreement for acquisition by affiliates of Brightstar Capital Partners at $12.50 per share, representing a 40% premium on AGS’s stock price as of May 8, 2024. The total value of the proposed transaction is approximately $1.1 billion and intends to take AGS private. The deal received unanimous approval from AGS’s Board of Directors. However, Emmett Investment Management LP, an activist investor with a 1.5% share in AGS, has released a letter urging shareholders to vote against the bid. Emmett argues that the proposed bid undervalues AGS, especially considering its recent 21% organic adjusted EBITDA growth and its potential market share gains from the merger of IGT and Everi. Emmett believes the transaction is not in the best interests of AGS’s shareholders as it fails to recognize the company’s potential future gains.

Gaming and Gambling, Private Equity, Investment Management,United States, Global