Brightstar Capital Finalizes $1.1B Takeover of PlayAGS

Brightstar Capital Partners has completed its takeover of PlayAGS, Inc., shifting the gaming supplier from public to private in a deal valued at approximately $1.1 billion. The deal, first announced in early May, has received the necessary shareholder and regulatory approvals. While this shift marks a substantial change for the company, it should not substantially impact its operations.

Partnering Operators Can Expect Continued Excellence

AGS shareholders received payoffs of $12.50 per share in cash as the company was delisted from the New York Stock Exchange. This deal follows stellar growth in the company’s slots, table products, and interactive segments over the last several years, as it secured partnerships with industry-leading operators like BetMGM and remained at the forefront of innovation.

For Brightstar, a New York-based private equity firm with holdings in industrials, business services, and technology, the acquisition is a bet on the future of gaming technology and infrastructure. The company believes that AGS’ competitive offerings and robust operator relationships give it a market edge in an industry where modernization and diversification are paramount to success.

Our goal is to help AGS expand into new markets and continue to use technology to create exciting games and products.

Andrew Weinberg, Brightstar founder, CEO & co-chair

The Las Vegas-based full-spectrum gaming supplier provides its products to land-based and digital casino operators. Its product portfolio includes high-performance slots, table game equipment, and an expanding online content library. AGS remains focused on “innovation with intent”, a strategy that has allowed it to expand its footprint in North America and beyond.

The Deal Proceeded Despite Some Investor Opposition

Despite Brightstar’s optimism, the deal was not without controversy. Emmett Investment Management, holder of a small but vocal stake in AGS, opposed the takeover. The activist investor argued that the $12.50 offer undervalued the company and was frustrated that the deal was announced just before a healthy earnings quarter. Emmett worried that the timing could have shortchanged shareholders who could benefit from AGS’ momentum.

In its Q1 financials, AGS posted 21% year-over-year growth in adjusted EBITDA, exceeding many of its industry peers. While Emmett argued that the deal did not account for the company’s value trajectory, the deal still received board and shareholder approval. Despite the pushback, AGS CEO David Lopez remained optimistic, underlining the benefits of increased flexibility.

AGS is in an ideal position to accelerate growth and double down on delivering focused, high-impact innovation across slots, table products, and online gaming.

David Lopez, PlayAGS CEO

Now operating as a private company, AGS will look to maintain its impressive momentum and pursue sustained growth under Brightstar’s ownership. With fresh capital and fewer public market constraints, the company can freely focus on R&D and new market penetration. Regulated digital gaming remains a promising vertical, potentially allowing expansion to new jurisdictions worldwide.