AGS announced Monday morning that it had rejected Inspired Entertainment’s bid to buy the company at $10 per share, or $370 million total, according to Senior Analyst David Bain of B Riley Securities.
However, AGS made clear that it was only rejecting the specific proposal and the company remains in preliminary discussions with Inspired Entertainment.
AGS’ board and management are committed to acting in the best interests of all shareholders and will carefully review any proposal received, the company said.
Following Reuters breaking the news that the offer had been submitted Friday, PlayAGS stock jumped 34% from $6.04 to $8.06 Friday and opened at $8.25 Monday.
Earlier this month, AGS announced earnings that topped Wall Street forecasts for earnings per share and revenue. Revenue rose 15.2% to $70.5 million from $61.2 million. Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, rose 6% to $34.1 million from $32.1 million.
