AGS agrees to $1.5 billion takeover by Brightstar subsidiaries

AGS has granted its consent for a takeover bid by the subsidiaries of Brightstar Capital Partners for the amount of roughly $1.5 billion CAD.

The deal will, in all probability, be witnessing a closure by the second half of next year, transforming AGS into a private enterprise. 

In the case of the shareholders giving their consent for the acquisition, as the board’s suggestion, they will come in for $17 CAD for every share in cash, representing a 40% premium for AGS’ closing price. 

According to the CEO and President of AGS, David Lopez, the shareholders will benefit from substantial cash value through the deal. This tie-up with Brightstar will open the doors for supplying unique content to their associated operators and expand their business in every way. 

AGS is known to provide brick-and-mortar slot and table games as well as online casino-related content in the gaming space. Where Canada is concerned, the company runs its business in several territories and is connected with Caesars Digital, the legal end of Ontario’s gaming space. This is via associations forged with lottery corporations, such as Loto-Quebec and AGLC’s PlayAlberta.ca website.  

Following the takeover, Brightstar will have complete control over the company’s gaming activities. 

As per the previous financial status, the company spoke of a rise of 15% in terms of revenue generation in the fourth quarter of 2023. 

AGS, named after the moniker PlayAGS, was taken over by Apollo Global management in 2013. It was then registered on the New York stock exchange in 2018. Inspired Entertainment INC., too, was keen on taking over the company for $500 million CAD in 2022, but the deal never saw the light of day. Following that, AGS’ value increased three times. 

Andrew Weinberg and Roger Bullock, both connected with Brightstar, feel strongly about the takeover and are convinced it will be profitable for them all.