Inspired Entertainment, a provider of gambling machines and technology, may soon acquire PlayAGS, an NYSE-listed producer of gaming tables and interactive solutions. According to reports, the former company put forward $370 million to acquire PlayAGS.
Inspired Entertainment to Acquire PlayAGS
Reuters first reported Inspired Entertainment’s intentions. However, PlayAGS soon confirmed the rumors by saying that it has indeed received an acquisition offer. Although PlayAGS did not outright confirm whether the deal was proposed by Inspired Entertainment, it did note that “a third party” proposed to buy out its shares for the price of $10 per share. This is noticeably higher than their current value.
PlayAGS emphasized that it has not accepted the offer yet but didn’t rule it out either. The company said it would continue to negotiate the terms but cannot confirm whether it will ink a merger. Regardless if PlayAGS accepts the deal or not, the news immediately led to a sharp rise in the company’s share price. As of the time of this writing, one PlayAGS share costs $7.51 on the NYSE.
PlayAGS went public in 2018 but has since struggled with hardship. The COVID-19 pandemic that ensued soon after the company was listed on the NYSE devastated its stock. The pandemic prevented PlayAGS from unfolding its full potential and caused its value to plummet to just a fifth of what it used to be. Despite everything, PlayAGS is now on the path to recovery as it recently announced its Q2 revenues surpassed earlier estimations.
Inspired Is Looking for M&A Opportunities
Meanwhile, Inspired Entertainment refused to speak about the deal or confirm whether it was the “third party” that proposed the acquisition. Despite Inspired’s silence, a merger would tie in well with the company’s current strategy. Last week, Stewart Baker, the provider’s chief financial officer, confirmed that Inspired is on the lookout for M&A opportunities.
Back then, Baker explained that Inspired is actively looking for merger opportunities – something he said strategically fits with the company’s strategy. He also mentioned that there are currently a lot of things that are “presenting themselves as possibilities.”
This year has seen Inspired Entertainment steadily expand its presence in the United States and beyond. In early March, Inspired doubled down on its US expansion by launching its products in Connecticut. A few weeks later, the provider launched special sports streams in Italy via Sisal.
In late May, the gambling provider forayed into Pennsylvania as a way to continue its NA-centered strategy.