Slot machine and iGaming supplier PlayAGS (AGS) has agreed to “definitive terms” to be taken over by the private equity fund of Brightstar Capital Partners.
The company, which is listed on the New York Stock Exchange (NYSE), confirmed that its Board of Directors has unanimously approved the agreement and recommended that its stockholders approve it.
AGS shareholders will receive $12.50 per share in cash, which values the company at approximately $1.1 billion. The offer represents a 41% premium over the firm’s NYSE closing price as of May 8.
“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,” said AGS President and CEO David Lopez.
Lopez noted that the addition of Brightstar’s resources and strategic guidance will position AGS to make “targeted investments” in R&D, talent, operations and innovation.
“We look forward to working with David and the AGS team to capitalize on opportunities by taking a long-term approach to creating value,” added Brightstar Founder and CEO Andrew Weinberg.
“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.”
Subject to customary closing conditions, including the receipt of regulatory approvals and approval by a majority of AGS stockholders, AGS expects the deal to close in the second half of 2025.
AGS is not the only company within the gaming industry to be taken over by private equity funds in recent times. Last month, Open Bet’s parent Endeavor and Canadian-based payment firm Nuvei both agreed to multi-billion dollar privatization deals.
