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AGS to be Acquired, Taken Private by Brightstar

AGS to be Acquired, Taken Private by Brightstar

Six years after it began trading as a public company on the New York Stock Exchange, PlayAGS, the parent company of slot supplier AGS, announced it has signed a definitive agreement to be acquired by Brightstar Capital Partners, a middle-market private equity firm focused on investing in industrial, manufacturing, and services businesses.

AGS, formerly owned by Apollo Global Management, began trading as a public company in January 2018. It has since seen a string of successes as a supplier of casino slot machines and specialty table games. In taking the company private again, Brightstar has agree to pay AGS shareholders $12.50 per share in cash, in a deal worth around $1.1 billion.

The AGS Board of Directors has unanimously approved the agreement, and has recommended that the company’s stockholders approve the deal. The per-share purchase price represents a 41 percent premium over the company’s volume-weighted average share price over the last 90 days and a 40 percent premium to AGS’ closing price on May 8.

“We are very pleased to reach this agreement, which we believe provides our stockholders with compelling, certain cash value,” said David Lopez, president and CEO of AGS. “Joining forces with Brightstar represents an exciting new chapter for AGS and our mission to provide exceptional gaming solutions for our operator partners.

“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.”

“We look forward to working with David and the AGS team to capitalize on opportunities by taking a long-term approach to creating value,” said Andrew Weinberg, founder and CEO of Brightstar. “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.”

“We have been impressed by AGS’ award-winning products, differentiated culture, and outstanding reputation in this expanding industry,” said Roger Bulloch, partner at Brightstar. “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.”

The proposed transaction, which is expected to close in the second half of 2025, is subject to customary closing conditions, including the receipt of regulatory approvals and approval by a majority of AGS stockholders. Upon completion of the transaction, AGS will become a privately held company and shares of AGS common stock will no longer be listed on any public market.

AGS shares soared by 22 percent, to $10.92, the day of the announcement.

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