According to Reuters, Inspired has offered to purchase the business for $10 per share in cash. The news of this potential deal was reported on August 12th, causing PlayAGS shares to increase by 25% to $7.25 by the end of the day. In a filing with the US Securities and Exchange Commission, PlayAGS confirmed that it had received a non-binding indication of interest from a third party to acquire the business. PlayAGS is currently in discussions with the interested party, whose identity has not been disclosed.
However, PlayAGS has stated that there is no guarantee that a transaction will be completed at this price or with this third party. The company’s board of directors and management team are committed to acting in the best interests of shareholders. PlayAGS has a policy of not commenting on market rumors and will only provide updates on potential transactions if required by law or a regulatory body.
Inspired has also responded to the report but has chosen not to comment on market rumors or speculation.
This news comes after both businesses released their financial results for the first half and second quarter of 2022. PlayAGS reported a net profit due to record revenue figures from land-based operations and table games during the second quarter. Meanwhile, Inspired experienced significant revenue growth in its virtual sports vertical during the first half, with a 72% increase year-on-year for the three months ending June 30th.
Both companies have demonstrated the strength of their business models and the resilience of consumer spending across their segments in their respective financial reports.
