PlayAGS Acquired by Brightstar Capital Partners in $1.1 Billion Deal
Gaming products and services provider PlayAGS has announced its acquisition by affiliates of middle-market private equity firm Brightstar Capital Partners in a transaction valued at $1.1 billion. The deal is slated for completion in the latter half of 2025.
The PlayAGS Board of Directors has unanimously endorsed the agreement, recommending that the company’s stockholders approve the transaction. AGS shareholders are set to receive $12.50 per share in cash, representing a 41% premium over the company’s closing stock price on Wednesday.
This announcement spurred a 26.6% surge in PlayAGS shares, traded on the Nasdaq exchange, on Thursday.
Leadership Perspectives on the Acquisition
David Lopez, CEO & President of AGS, expressed satisfaction with the agreement, stating, “We are very pleased to reach this agreement, which we believe provides our stockholders with compelling, certain cash value. Joining forces with Brightstar represents an exciting new chapter for AGS and our mission to provide exceptional gaming solutions for our operator partners.”
Lopez further highlighted the strategic advantages of the partnership: “With Brightstar’s resources and strategic guidance, we believe AGS will be well-positioned to make targeted investments in R&D, top talent, operations, and industry-leading innovation, which should accelerate our global footprint.”
Andrew Weinberg, Founder & CEO of Brightstar, shared his optimism about the collaboration: “We look forward to working with David and the AGS team to capitalize on opportunities by taking a long-term approach to create value.”
Weinberg also noted AGS’s robust product pipeline and innovative approach, stating, “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.”
Roger Bulloch, Partner at Brightstar, praised AGS’s accomplishments and future potential: “We have been impressed by AGS’ award-winning products, differentiated culture, and outstanding reputation in this expanding industry. We trust that partnering with AGS and executing on our shared vision can accelerate the company’s ability to create even greater value for its customers and players around the world.”
Brightstar’s Investment Strategy
Brightstar Capital Partners focuses on investing in industrial, manufacturing, and services businesses, aiming to enhance value through effective management, operations, and strategic direction.
Advisory Teams
In this transaction, Macquarie Capital serves as financial advisor and Cooley LLP as legal counsel to AGS. Brightstar’s advisory team includes Jefferies LLC as the lead financial advisor, with Barclays and Citizens JMP Securities also providing financial advice. Legal counsel for Brightstar is being provided by Kirkland & Ellis LLP.
Recommended