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Brightstar Capital agrees $1.1bn PlayAGS take-private deal

PlayAGS will be acquired by affiliates of private equity firm Brightstar Capital Partners, with the deal valued at $1.10bn. The company’s board has approved the acquisition and recommended shareholders also vote in favour of the proposed deal.

Brightstar invests in industrial, manufacturing and services businesses.

Under the agreement, PlayAGS shareholders will receive $12.50 per share in cash. This represents a 41% premium to the volume-weighted average share price over the last 90 days and a 40% premium to closing price on 8 May. This is the day before the acquisition became public.

If the deal completes, PlayAGS will become a privately held company. Its shares will not list on any public markets. Subject to regulatory and shareholder approvals, the acquisition will close in the second half of 2025.

Macquarie Capital is serving as financial advisor and Cooley as legal counsel to PlayAGS. Jefferies is lead financial advisor to Brightstar, with Barclays and Citizens JMP Securities as financial advisors and Kirkland & Ellis as legal counsel.

PlayAGS CEO David Lopez believes that the acquisition marks an “exciting” chapter for the business, and says that Brightstar will support the company’s expansion in markets around the world.

“We are very pleased to reach this agreement,” Lopez said in a press statement. “We believe it provides our stockholders with compelling, certain cash value. Joining forces with Brightstar represents an exciting new chapter for PlayAGS and our mission to provide exceptional gaming solutions for our operator partners.

“With Brightstar’s resources and strategic guidance, we believe PlayAGS will be well positioned to make targeted investments in R&D, top talent, operations and industry-leading innovation, which should accelerate our global footprint.”

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