Brightstar Announces $1.1bn Acquisition of PlayAGS, Stock Price Jumps

The global company, offering a diverse range of entertaining gaming experiences that resonate well with audiences across the globe, AGS (PlayAGS), announced it entered into a definitive agreement to go private via an acquisition by affiliates of Brightstar Capital Partners (Brightstar). Details regarding the new business combination emerged Thursday with AGS’ Board of Directors unanimously approving the proposed acquisition.

Moreover, the company recommended the transaction to be approved by its stockholders. Under the terms of the acquisition, AGS shareholders will receive $12.50 per company share in cash. The proposed acquisition, valued at approximately $1.1 billion, represents a 41% premium on the company’s volume-weighted average price range for the last 90 days. Additionally, Brightstar’s acquisition bid represents a 40% premium on the AGS’ closing stock price as of May 8, 2024.

The proposed acquisition is expected to be completed at some point in the second half of 2025. Now, AGS will seek approval from its stockholders. Additionally, the transaction remains contingent on the relevant regulatory approvals. Once this happens and the transaction with Brightstar closes, AGS will become a privately held company and its common stock won’t be publicly listed.

At the time of writing AGS’ shares on NYSE trade at $11.34 per share. Since the announced acquisition, the share price marked an uptick of approximately 27%.

The Acquisition Marks an Exciting Chapter in AGS’ Growth

Andrew Weinberg, Brightstar’s founder and CEO, spoke about the exciting future for AGS that is expected to present new long-term opportunities for creating value. “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,” he added.

“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.“

David Lopez, CEO and president of AGS

David Lopez, AGS’ CEO and president, was just as thrilled, saying that the company is excited to announce this agreement. He predicted that the transaction would help create value for company stockholders.

Moreover, Lopez outlined that after the acquisition, AGS would be able to start a new chapter of its growth. Finally, he predicted the expansion of the company on a global scale, impacted positively by Brighstar’s guidance and resources.