Early Thursday morning, PlayAGS announced that—in a surprise move—it had agreed to be acquired by Brightstar Capital for $1.1 billion. The move values AGS stock at $12.50 a share. AGS was trading at $8.96 per share at yesterday’s close but shares leapt to $11.63 apiece in early trading today.
PlayAGS is a maker of slot machines, table games and igaming products. Its board of directors unanimously approved the Brightstar proposal, which represented a 40 percent premium to yesterday’s stock price.
PlayAGS CEO David Lopez said that “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.”
Responded Brightstar partner Roger Bulloch, “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.”
Added Brightstar 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.” Jefferies advised Brightstar on the purchase, while PlayAGs worked with Macquarie Capital.
This afternoon’s earnings call and today’s first-quarter earnings release have been canceled. A 10-Q statement will be filed with the Securities & Exchange Commission tomorrow.
