Pennsylvania iGaming Provider Play AGS Acquired For $1.1 Billion

Pennsylvania iGaming Provider Play AGS Acquired For $1.1 Billion


Pennsylvania iGaming provider Play AGS has been acquired by Brightstar Capital Partners in a definitive agreement for about $1.1 billion, Brightstar Capital Partners announced May 9.

Play AGS’s Board of Directors approved an agreement that will pay its shareholders $12.50 per share

Play AGS’ Board of Directors unanimously approved an agreement that will pay AGS shareholders $12.50 per share. That represents a 41% premium to PlayAGS’ volume-weighted average share price spanning the last 90 days and a 40% premium to the $8.96 closing price on May 8.

“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,” said David Lopez, CEO & President of AGS, in a joint statement with Brightstar.

“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.”

According to Chris Altruda of USBets, shares have surged since the announcement, climbing more than 25% to $11.33 in early morning trading May 9 on the New York Stock Exchange.

Play AGS is “powered by high-performing Class II and Class III slot games, standout service and game cabinets, an award-winning table products portfolio, and popular social and iGaming presence,” according to its site.

The Pennsylvania iGaming provider unveiled its first mechanical reel cabinet slot last month

Moreover, the “Lucky Lucky” bonus wager played with blackjack is Play AGS’ most recognized feature for gamblers. In April, the company also unveiled its first mechanical reel cabinet slot at the Indian Gaming Association trade show in Anaheim, California.

Play AGS’ most popular slots include “Coin Bonanza: Lucky O’Reilly,” “Rakin’ Bacon,” “Panda Blessings,” and “Forest Dragons.” Additionally, “Revel” features an authentic jackpot bell and mechanical arm-pull combined with controlled reel LED lights.

“We have been impressed by AGS’ award-winning products, differentiated culture, and outstanding reputation in this expanding industry,” said Roger Bulloch, Partner at Brightstar.

“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.”

Cooley LLP is serving as legal counsel and Macquarie Capital is serving as financial advisor to AGS. Kirkland & Ellis LLP is serving as legal counsel to Brightstar.

Additionally, Jefferies LLC is also serving as lead financial advisor to Brightstar. Barclays and Citizens JMP Securities are serving as financial advisors to Brightstar as well.

In 2004, Pennsylvania legislators passed Act 71, making one step closer to legalize gambling. The Pennsylvania Racehorse Development and Gaming Act established the Pennsylvania Gaming Control Board and legalized casinos and racetracks within the state.

On Oct. 30, 2017, then-Gov. Tom Wolf signed a bill into law that permitted online gambling. It first launched on July 17, 2019.

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