Brightstar Capital Partners Acquires PlayAGS for $1.1 Billion
Brightstar Capital Partners Finalizes Acquisition of PlayAGS
Brightstar Capital Partners, a dynamic private equity firm, has successfully closed its acquisition of PlayAGS, Inc. for an impressive valuation of approximately $1.1 billion. This significant step marks a new chapter for PlayAGS, a notable player within the gaming sector known for its high-quality slot machines and interactive products.
Details of the Acquisition
Upon completion of the acquisition, shareholders of AGS will receive $12.50 per share in cash. This cash buyout reflects the confidence Brightstar has in the future potential of AGS as it aims to redefine its strategy in the rapidly evolving gaming market. With this transaction, AGS transitions to a privately owned entity, leading to the delisting of its common stock from the New York Stock Exchange, signifying a change in its operational direction.
Strength in Growth and Performance
The acquisition of PlayAGS occurs alongside a period of robust growth for the company. Over the last few years, AGS has successfully doubled its global slot unit sales, achieving a staggering total of over 6,100 units sold. Additionally, AGS has experienced over 150% increase in revenue from online gaming content and more than 50% growth in Table Products revenue. Such accomplishments underscore a trend of three consecutive years of record-breaking revenue performance.
CEO's Vision for the Future
David Lopez, the CEO and President of AGS, expressed enthusiasm regarding the partnership with Brightstar Capital Partners. He stated this collaboration is a turning point for AGS and envisions this alliance as a catalyst for accelerated growth. With the backing of Brightstar, AGS is poised to enhance its offerings across the slots, table games, and online gaming domains, empowering casino operators with distinct content and solutions.
Brightstar's Commitment to AGS
Andrew Weinberg, the Founder and CEO of Brightstar, echoed these sentiments, welcoming the AGS team into the Brightstar family. He highlighted that AGS's unique product range and commitment to customer service are pivotal within an expanding industry. Brightstar aims to leverage its resources to assist AGS in penetrating new markets while innovating further within gaming technology.
The Role of Financial Advisors
In this significant transaction, Macquarie Capital acted as the financial advisor for AGS, while Jefferies LLC took the lead financial advisory role for Brightstar. Legal counsel for AGS was provided by Cooley LLP, with additional advisory support from Barclays and Citizens JMP Securities for Brightstar. This robust advisory team reflects the importance and complexity of the acquisition, further ensuring its success.
About PlayAGS
PlayAGS is dedicated to crafting a diverse array of engaging gaming experiences tailored to various player preferences. Its portfolio spans a full range of products including slot machines, table games, and online gaming solutions. PlayAGS has firmly established itself as one of the all-encompassing suppliers in the gaming industry, fueled by a culture centered around customer satisfaction and continuous innovation.
About Brightstar Capital Partners
Brightstar Capital Partners, with a robust asset management of $5 billion, concentrates its efforts on investing in business services, industrials, consumer goods, and technology sectors. Since its inception in 2015, it has adeptly partnered with a myriad of family-run and entrepreneur-led businesses, employing a hands-on approach to enhance operational efficacy and strategic direction.
Contact Information
For AGS inquiries: Julia Boguslawski, Chief Marketing Officer. Reach her at PR@PlayAGS.com.
For Brightstar inquiries: Prosek Partners can be contacted at Pro-Brightstar@Prosek.com.
Frequently Asked Questions
What was the total value of the acquisition?
The total value of the acquisition was approximately $1.1 billion.
Who will receive cash for their shares?
Current shareholders of PlayAGS will receive $12.50 per share in cash.
What is the growth trend for AGS before the acquisition?
AGS has doubled its global slot sales and increased online gaming content revenue by over 150% before the acquisition.
Who were the financial advisors for this transaction?
Macquarie Capital advised AGS, while Jefferies LLC served as the lead advisor for Brightstar, among others.
What does this acquisition mean for AGS’s stock?
AGS will be delisted from the New York Stock Exchange, marking its transition to a privately held entity.
About The Author
Contact Lucas Young privately here. Or send an email with ATTN: Lucas Young as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
