AGS (PlayAGS), a global company known for offering a diverse range of engaging gaming experiences, has announced its agreement to go private through an acquisition by affiliates of Brightstar Capital Partners (Brightstar). On Thursday, AGS’ Board of Directors unanimously approved the proposed acquisition and recommended that stockholders also approve the transaction.
Under the acquisition terms, AGS shareholders will receive $12.50 per share in cash. This proposal, valued at approximately $1.1 billion, offers a 41% premium on the company’s volume-weighted average price over the last 90 days and a 40% premium on AGS’ closing stock price as of May 8, 2024.
The acquisition is anticipated to be completed in the second half of 2025, pending stockholder and regulatory approvals. Once finalized, AGS will become a privately held company, and its common stock will no longer be publicly traded.
As of now, AGS’ shares on the NYSE are trading at $11.34 per share, reflecting a 27% increase since the acquisition announcement.
The acquisition marks an exciting chapter in AGS’ growth
Andrew Weinberg, Brightstar’s founder and CEO, highlighted the promising future for AGS, emphasizing the potential for long-term growth. “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,” he said.
David Lopez, AGS’ CEO and president, echoed this enthusiasm, stating that the agreement is beneficial for stockholders by providing compelling, certain cash value. He expressed excitement about the new chapter for AGS, which aims to deliver exceptional gaming solutions for its operator partners.
Lopez also noted that the acquisition would enable AGS to embark on a new phase of growth and expand globally, leveraging Brightstar’s guidance and resources.
