AGS goes private: Brightstar Capital Partners acquires for $1.1 billion
Date: 2024-05-09 Author: Leon Pierce Categories: EVENTS
AGS, one of the leading providers of gaming equipment, is entering into a deal with Brightstar Capital Partners that is valued at $1.1 billion. This acquisition will result in AGS becoming a private company.
Final Agreement
A definitive agreement to acquire shares of AGS has been reached with Brightstar Capital Partners, a private equity firm. The deal is valued at $1.1 billion, offering a 40% premium to the current AGS share price at the time of the deal.
Macquarie Capital and Cooley LLP will lead the transaction as financial and legal advisors to AGS respectively. Brightstar Capital Partners will assign the roles to its financial advisors Jefferies LLC, Barclays and Citizens JMP Securities, as well as legal advisor Kirkland & Ellis.
Expected completion of the transaction
The acquisition is expected to be completed in the second half of next year, subject to regulatory and AGS shareholder approval. Upon completion of the transaction, AGS will become a private company and its shares will be delisted from public trading.
Following the acquisition, AGS will no longer release its first quarter financial report either as an earnings release or via conference call.
The trend towards the private sector
The AGS deal confirms the trend towards private investment in the gambling industry. Many companies, such as Bally's and Endeavor, have chosen to forgo public trading in favor of private status, reducing administrative burdens and market volatility.
While the move to the private sector may limit access to capital, for large transactions such as the $1 billion-plus acquisition of AGS this is not an issue.
