Brightstar Capital Partners Acquires PlayAGS in Major Deal
Brightstar Capital Partners Completes Acquisition of PlayAGS
Brightstar Capital Partners, a well-regarded private equity firm, has made waves in the gaming industry with its recent acquisition of PlayAGS, Inc. This deal, valued at approximately $1.1 billion, underscores Brightstar's strategic focus on high-value investments in business services and technology sectors.
Details of the Acquisition
The acquisition journey began with an announcement earlier last year, and it successfully concluded following the required approvals from AGS stockholders. As part of the agreement, AGS stockholders will receive cash payments of $12.50 per share, transitioning AGS from a publicly traded entity to a privately held company, which will be delisted from the New York Stock Exchange.
AGS's Growth Trajectory
Over recent years, AGS has experienced remarkable growth. The company has doubled its global slot unit sales, surpassing 6,100 units, and significantly increased its online gaming content revenue by over 150%. Additionally, revenue from table products has risen sharply, marking substantial milestones in AGS's performance metrics.
Shared Vision and Future Goals
David Lopez, CEO & President of AGS, expressed excitement about the future of AGS under the new partnership with Brightstar. He believes this collaboration will position AGS to further its growth and enhance its capabilities in providing innovative gaming solutions, especially in slots and table products, benefiting casino operators worldwide.
Brightstar's Vision for AGS
The founder of Brightstar, Andrew Weinberg, emphasized the unique position AGS holds in the industry and expressed eagerness to work closely with AGS to help expand its market reach and leverage technological advancements to create engaging gaming experiences.
Advisory and Legal Support
A range of experienced financial advisors facilitated this transaction, including Macquarie Capital advising AGS and Jefferies LLC serving as the lead advisor for Brightstar. Additional legal counsel from firms including Cooley LLP and Kirkland & Ellis LLP played key roles in ensuring the smooth execution of the deal.
About PlayAGS
AGS has established itself as a comprehensive gaming supplier with a diverse portfolio that includes slot machines and table products. The company's commitment to delivering innovative gaming experiences is coupled with a customer-centric culture aimed at enhancing player engagement and success for casino operators.
About Brightstar Capital Partners
Brightstar Capital Partners has built a robust reputation in middle-market private equity with approximately $5 billion in assets under management. Its investment strategy focuses on sectors where it can leverage its operational expertise to maximize value creation. Since its inception in 2015, Brightstar has nurtured relationships with family-owned and entrepreneur-led businesses, applying its operationally intensive approach to foster growth and sustainability.
Frequently Asked Questions
What is the value of the PlayAGS acquisition?
The acquisition by Brightstar Capital Partners of PlayAGS is valued at approximately $1.1 billion.
What changes will AGS see following the acquisition?
AGS will transition from a publicly traded company to a privately held company, allowing for a more focused strategy on innovation and market expansion.
How has AGS performed in recent years?
AGS has experienced notable growth, doubling its global slot unit sales and increasing online content revenue significantly.
What is Brightstar's investment philosophy?
Brightstar focuses on sectors where it can apply operational expertise to enhance management and overall business direction.
Who advised on the acquisition deal?
Macquarie Capital served as financial advisor to AGS, while Jefferies LLC acted as lead advisor to Brightstar, among other firms involved.
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