Following a special meeting of the group’s stockholders, PlayAGS’ acquisition by affiliates of Brightstar Capital has been approved.
The $1.1bn deal that is expected to fully close in the second half of 2025, will see Brightstar gain full control of the gaming operations of AGS.
Upon the deal previously being announced, David Lopez, CEO & President of AGS, commented: “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.
“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.”
The final voting results of the Special Meeting will be reported on a Form 8-K filed by AGS with the U.S. Securities and Exchange Commission.
“We look forward to working with David and the AGS team to capitalise on opportunities by taking a long-term approach to creating value,” added Andrew Weinberg, Founder & CEO of Brightstar, at the time of the deal originally being announced.
“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.”
Macquarie Capital will serve as financial advisor for AGS, while Cooley LLP will serve as the supplier’s legal counsel throughout the acquisition.
There was previous opposition to the deal by Emmett Investment Management, a shareholder of AGS. At the time the group took objection to the pricing of the deal, publishing a letter that stated: “If market participants had been given the opportunity to digest first quarter results absent Brightstar’s bid, we believe AGS shares would be trading well above the current market price of $11.40.
“It is clear to any reasonable market participant that a $12.50 take-private bid for AGS would be practicable only if announced before AGS could trade freely after the release of first quarter results.
“In other words, the only way for this take-private bid to have been remotely palatable to stockholders was if stockholders did not fully appreciate the impact of the first quarter results.”
These problems have now been overcome though and the deal is set for completion in the early stages of 2025.
