PlayAGS Included, listed on the New York Inventory Alternate below the “AGS” ticker, a distinguished gaming provider recognized for its high-performing slot, desk, and interactive merchandise, has introduced the signing of a definitive settlement for its acquisition by associates of Brightstar Capital Companions, a center market non-public fairness agency specializing in investments throughout industrial, manufacturing, and companies sectors.
The settlement, unanimously accepted by AGS’s Board of Administrators, recommends that the Firm’s stockholders additionally approve the transaction, which values AGS at roughly $1.1 billion. Shareholders are set to obtain $12.50 per share in money, reflecting a considerable 41% premium over the Firm’s volume-weighted common share worth over the past 90 days and a 40% premium to AGS’ closing worth on Could 8, 2024.
AGS, acknowledged globally for its various gaming experiences catering to numerous participant demographics, sees this acquisition as a strategic transfer in direction of additional enhancing its choices for on line casino companions. David Lopez, CEO & President of AGS, expressed enthusiasm in regards to the settlement, stating: “We’re more than happy to achieve this settlement, which we imagine offers our stockholders with compelling, sure money worth.” Lopez additional elaborated on the potential advantages of becoming a member of forces with Brightstar, highlighting alternatives for focused investments in analysis and improvement, expertise acquisition, operations, and innovation, that are anticipated to bolster AGS’s international presence.
Andrew Weinberg, Founder & CEO of Brightstar, echoed this sentiment, emphasizing the Firm’s dedication to long-term worth creation, in response to an organization press launch. “We stay up for working with David and the AGS group to capitalize on alternatives,” Weinberg remarked, citing AGS’s sturdy product pipeline and revolutionary strategy to sport improvement as key drivers for future development.
Monetary advisory companies for AGS are being offered by Macquarie Capital, with authorized counsel from Cooley LLP, whereas Jefferies LLC leads the monetary advisory for Brightstar, supported by Barclays and Residents JMP Securities. Authorized counsel for Brightstar is offered by Kirkland & Ellis LLP.
No Earnings Launch for the First Quarter of 2024
In gentle of the approaching transaction, AGS has canceled its beforehand scheduled convention name to debate its first quarter 2024 monetary outcomes. Moreover, the Firm won’t concern a quarterly earnings launch at the moment however will file its 10-Q for the primary quarter of the yr with the Securities and Alternate Fee (SEC).
The final quarterly monetary assertion was launched by AGS for the fourth quarter of 2024 and the numbers had been fairly constructive, exhibiting a complete income improve of 15 p.c year-on-year. Furthermore, that was the eleventh consecutive quarter of double-digit development for the corporate’s income.
Established in 2005 and primarily based in Las Vegas, PlayAGS is a globally famend entity devoted to crafting a flexible array of fascinating gaming encounters tailor-made to each participant archetype. In 2013, it was acquired by Apollo World Administration, a strong worldwide non-public fairness firm, and in 2018, it bought its shares listed on the New York Inventory Alternate.
In 2022 there was one other proposed acquisition of PlayAGS by one other trade large, Impressed Leisure Included. The acquisition was speculated to occur for a a lot decrease sum, simply 370 million {dollars}, however the talks finally fell via and that led to a momentary 10% dip within the share worth of AGS.
The proposed acquisition, anticipated to conclude within the second half of 2025, stays topic to customary closing circumstances, together with regulatory approvals and the consent of a majority of AGS stockholders. Upon finalization, AGS will transition right into a privately held entity, with its frequent inventory not listed on any public market.
