Regulators in Nevada grant approval for Brightstar Capital's plan to make PlayAGS a private company.
* Here's the Deal Down with AGS and Brightstar *
Wanna know what's poppin' in the gaming world? The Nevada Gaming Commission recently gave the green light for affiliates of Brightstar Capital Partners to take over PlayAGS in a whopping $1.1 billion deal. Let's dive in!
Thirteen months ago, PlayAGS, a global supplier of slot, table, and interactive gaming products, struck a deal with Brightstar, a private equity firm specializing in industrial, manufacturing, and service businesses. This deal is expected to close in the early third quarter.
AGS shareholders will be walking away with a sweet $12.50 per share in cold, hard cash, which is a cool 40% premium over the company's closing price on May 8, 2024. The approval process with the Commission and Nevada Gaming Control Board went off without a hitch, and they even approved the licensing of Andrew Weinberg of Brightstar and David Lopez of PlayAGS.
Fun fact: Brightstar is just ten years old but already packs a punch with 60 employees and companies under their control boasting more than 25,000 employees across the nation. It's not unusual for a firm like Brightstar to represent a variety of health-care, educational organizations, pension plans, and family offices.
The Brightstar team is a unique blend of investors and operators. They don't plan to run PlayAGS; they think CEO David Lopez is doing a fantastic job and want to support him as a board member and shareholder. Weinberg calls Lopez a "standout" in the industry who has built a solid team.
PlayAGS, with about 1,000 employees, has come a long way since its start in Oklahoma and now has offices in various locations, including Las Vegas, Israel, Australia, Austin, Reno, Atlanta, and Arizona. With Brightstar's resources and expertise, AGS aims to target investments in research and development, top talent, operations, and industry-leading innovation, which should help the company expand its global footprint.
Lopez shares the same vision as Brightstar, believing that AGS will be in a prime position to grow as a result of their investment in AGS. He folks at AGS back in the day, when it was owned by Apollo, focusing on becoming an international diversified gaming supplier with operations primarily in Oklahoma. Today, AGS offers a much broader range of gaming products and services to an international clientele.
Weinberg has been in the gaming industry for decades. Back in the day, he worked with the Primm family to sell their assets to MGM Resorts International. He applauds Nevada as an incredibly business-friendly state.
The deal received rave reviews from Commission members, who recognize the value and opportunities that Brightstar is bringing to Nevada. It's all about this dynamic gaming duo expanding the horizons of the gaming industry and fostering growth opportunities!
The acquisition of PlayAGS by Brightstar Capital Partners, a private equity firm specializing in various industries, marks a significant entry into the sports gaming sector, given PlayAGS' diverse product portfolio that includes interactive gaming. With the approval of the gaming commission and commission board, and enhanced resources from Brightstar, PlayAGS aims to invest in research, talent, innovation, and operations, potentially broadening its global reach and product offerings beyond traditional casino games.
