PlayAGS has signed a definitive settlement to be bought by affiliates of personal fairness firm Brightstar Capital Partners, with the deal valued at $1.10bn (£877.3m/€1.02bn).
The PlayAGS board has popular the acquisition and instructed shareholders furthermore vote in favour of the proposed deal. Brightstar invests in industrial, manufacturing and services companies.
Below the settlement, PlayAGS shareholders will salvage $12.50 per fragment in cash. This represents a 41% top class to the amount-weighted reasonable fragment trace over the final 90 days and a 40% top class to closing trace on 8 Might per chance seemingly. Right here is the day sooner than the acquisition grew to change into public.
If the deal completes, PlayAGS will change into a privately held company. Its shares is no longer any longer going to listing on any public markets. Subject to regulatory and shareholder approvals, the acquisition will shut within the 2d half of of 2025.
Macquarie Capital is serving as financial handbook and Cooley LLP as just counsel to PlayAGS. Jefferies LLC is lead financial handbook to Brightstar, with Barclays and Voters JMP Securities financial advisors and Kirkland & Ellis LLP just counsel.
“Compelling” charge for PlayAGS shareholders
Commenting on the settlement, PlayAGS CEO David Lopez says that the acquisition marks an “provocative” chapter for the exchange. He adds Brightstar will fortify the company’s growth in markets across the area.
“We are very gratified to reach this settlement,” Lopez said. “We judge it provides our stockholders with compelling, particular cash charge. Joining forces with Brightstar represents a thrilling new chapter for PlayAGS and our mission to demolish distinctive gaming alternate choices for our operator companions.
“With Brightstar’s resources and strategic steerage, we judge PlayAGS shall be properly positioned to make centered investments in R&D, top talent, operations and exchange-main innovation, which ought to speed up our world footprint.”
Brightstar founder and CEO Andrew Weinberg furthermore talked up the deal. He said: “We take a seat up for working with David and the PlayAGS team to capitalise on opportunities by taking a lengthy-interval of time come to creating charge.
“PlayAGS has a solid pipeline of new products. We judge the company’s innovative come to sport development provides well-known possible for endured boost.”
Brightstar partner Roger Bulloch adds: “We now were impressed by PlayAGS’ products, differentiated custom and prominent reputation in this rising exchange.
“We belief that partnering with PlayAGS and executing on our shared vision can speed up the company’s means to make even increased charge for its clients and avid gamers across the area.”
PlayAGS cancels Q1 announcement
Incidentally, news of the settlement broke as PlayAGS modified into once as a result of yell its Q1 outcomes.
In mild of the acquisition proposal, PlayAGS is no longer any longer going to grief a quarterly earnings liberate. The community furthermore cancelled its scheduled earnings name on the quarter.
PlayAGS’s most most up to the moment outcomes, keeping the 2023 financial three hundred and sixty five days, showed that the exchange returned to a catch income. This followed three hundred and sixty five days-on-three hundred and sixty five days boost across all three of its core companies.
Team income climbed 15.2% to $356.5m, with double-digit share boost in every division: Electronic Gaming Machines, Table Products and Interactive.
Team spending modified into once increased three hundred and sixty five days-on-three hundred and sixty five days as PlayAGS expanded its operations. On the opposite hand, such modified into once the impression of income boost, it ended 2023 within the sunless, reporting a $7.4m catch income, in distinction to 2022’s $6.3m loss.
To boot, adjusted EBITDA for 2023 climbed 14.7% to $159.0m, with a margin of 44.6%.
Source: iGamingBusiness
