Gaming Supplier AGS To Be Acquired by Brightstar Capital in $1.1 Billion Deal

Article by : Erik Gibbs May 14, 2024

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PlayAGS, Incorporated, a global gaming supplier known for its slot, table and interactive products, has recently entered into a definitive agreement to be acquired by affiliates of Brightstar Capital Partners. It’s a deal with overwhelming support, given its reported value of approximately $1.1 billion.

This acquisition deal, approved unanimously by AGS’s Board of Directors and recommended for stockholder approval, offers AGS shareholders $12.50 per share in cash, a substantial premium to the Company’s recent stock performance.

Brightstar Capital Partners, a middle-market private equity firm focused on industrial, manufacturing, and services businesses, sees this acquisition as an opportunity to align AGS’s diverse gaming offerings with its investment strategy.

The move is anticipated to create long-term value, with Andrew Weinberg, Brightstar’s founder and CEO, expressing confidence in strategic investments in AGS’s innovative product pipeline and game development capabilities.

David Lopez, CEO and president of AGS, also expressed satisfaction with the agreement, emphasizing its benefits for stockholders and the potential for AGS to thrive under Brightstar’s ownership.

Roger Bulloch, Partner at Brightstar, underscores AGS’s product portfolio strength and reputation in the gaming industry, emphasizing the partnership’s potential to enhance value for customers and players globally.

In terms of financial advisory and legal counsel, AGS is advised by Macquarie Capital and represented legally by Cooley LLP. Brightstar, on the other hand, receives financial advisory services from Jefferies LLC, with additional support from Barclays and Citizens JMP Securities. Kirkland & Ellis LLP provides legal counsel for Brightstar.

Due to the pending acquisition, AGS has canceled its scheduled conference call to discuss first-quarter 2024 financial results and will not release a quarterly earnings report. Instead, the company expects to file its 10-Q for the quarter ended March 31, 2024, with the Securities and Exchange Commission (SEC) as per regulatory requirements.

The acquisition is expected to close in the second half of 2025, subject to customary closing conditions and regulatory approvals. Upon completion, AGS will transition to a privately held entity, with its shares no longer traded on any public market.

Brightstar Capital Partners, specializing in middle-market private equity investments, targets the industrial, manufacturing, and services sectors, where it can drive operational improvements and strategic growth.

The firm’s “Us & Us” approach emphasizes collaboration with portfolio companies to unlock value and maximize potential. Focusing on operational excellence and leveraging extensive industry experience, Brightstar seeks to partner with businesses poised for long-term success and growth.