Las Vegas-based gaming equipment manufacturer PlayAGS Inc. is being acquired by a middle-market private equity firm in a $1.1 billion deal announced Thursday by both companies.
Affiliates of New York-based Brightstar Capital Partners are acquiring the table-game, slot-machine and interactive game manufacturer in a cash transaction that will give PlayAGS shareholders $12.50 a share, a 40 percent premium over the company’s Wednesday closing stock price.
PlayAGS shares, traded on the Nasdaq exchange, climbed 26.6 percent on heavy trading Thursday.
The PlayAGS board of directors recommended approval of the sale, which must be approved by regulators, to its shareholders.
The transaction is expected to close in the second half of 2025.
Brightstar has been focused on investing in industrial, manufacturing, and services businesses where the company believes it can drive significant value with respect to the management, operations, and strategic direction of the business.
The company created the Burning Tiger, Butterfly Rise and Blissful Fortune slot machine franchises as well as a number of progressive jackpots on blackjack side bets and card shufflers. The company has more than 800 full-time employees.
“Joining forces with Brightstar represents an exciting new chapter for AGS and our mission to provide exceptional gaming solutions for our operator partners,” said PlayAGS President and CEO David Lopez said in a release announcing the deal. “With Brightstar’s resources and strategic guidance, we believe AGS will be well-positioned to make targeted investments in research and development, top talent, operations, and industry-leading innovation, which should accelerate our global footprint.”
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.