AGS’ Board of Directors have given unanimous approval to the gaming supplier’s acquisition from affiliates of Brightstar Capital Partners.
Upon approving the acquisition from Brightstar, an industry-focused private equity firm, AGS’ shareholders will receive $12.50 per share in cash, representing a 41 per cent premium to the supplier’s volume-weighted average share price over the last 90 days.
The figure also represents a 40 per cent premium to AGS’ closing price on May 8, 2024.
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.”
While the acquisition has been approved by the AGS Board of Directors, they did recommend that the company’s stakeholders approve the acquisition before its completion.
If the acquisition gains full approval, Brightstar will gain full control of AGS gaming operations, supplying land based slot and table game products as well as online casino content.
“We look forward to working with David and the AGS team to capitalise on opportunities by taking a long-term approach to creating value,” said Andrew Weinberg, Founder & 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.”
Macquarie Capital will serve as financial advisor for AGS, while Cooley LLP will serve as the supplier’s legal counsel throughout the acquisition.
For Brightstar, Jefferies LLC will serve as lead financial advisor with Barclays and Citizens JMP Securities as supporting financial advisors. Kirkland & Ellis LLP will handle the buyer’s legal counsel.
Due to the acquisition announcement, AGS has cancelled its Q1 2024 conference call, which was set to take place on May 9, and has confirmed that it will not issue a quarterly earnings release.
Roger Bulloch, Partner at Brightstar, added: “We have been impressed by AGS’ award-winning products, differentiated culture, and outstanding reputation in this expanding industry.
“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.”
Subject to customary closing conditions, the transaction is expected to close in the second half of 2025 with AGS to become a privately held company.