Brightstar Capital acquires global gaming supplier AGS for $1.5B

Brightstar Capital Partners has recently announced its intention to acquire global gaming supplier AGS, also known as Play AGS, for approximately $1.5B CAD. 

In Canada, AGS supplies both online and land-based slot machine and table game products to a number of high-profile entities in the Canadian gaming industry. 

For this reason, Brightstar Capital's intention to acquire the company can potentially have a significant impact on the future of AGS supplied games in Canada. 

Amongst these online and land-based gambling establishments, one can mention the following: 

• Caesar's Digital in the regulated iGaming market of Ontario 

• Loto-Québec 

• PlayAlberta 

If the shareholders of AGS approve this takeover, they will each receive around $17 CAD per share in cash.  

This represents a 40% premium on the closing price of AGS on May 8, 2024. 

AGS has agreed to be acquired by the affiliates of Brightstar Capital. The board of AGS recommends that the company’s shareholders do, in fact, give their approval. 

So far, the transaction is projected to come to a close in the second half of 2025. 

If, or when, this deal is finalized, AGS will become a privately held company, and Brightstar Capital will gain full control of the global gaming supplier’s gaming operations. 

Comments made with regards to this acquisition 

Andrew Weinberg, the Founder and CEO of Brightstar Capital Partners, remarked on the way in which the company’s decision to acquire AGS represents the way in which Brightstar seeks to take “a long-term approach to creating value.” 

In addition to this, Weinberg went on to state the following: 

“AGS has a strong pipeline of new products, and we believe the company’s innovative approach to game development provides significant potential for continued growth. We look forward to working with David and the AGS team to capitalize on opportunities by taking a long-term approach to creating value.” 

A partner at Brightstar Capital Partners also had something to say about this acquisition, pointing out what Play AGS can offer: 

“We have been impressed by AGS’ award-winning products, differentiated culture, and outstanding reputation in this expanding industry. We trust that partnering with AGS and executing on our shared vision can accelerate the Company’s ability to create even greater value for its customers and players around the world.” 

The CEO and President of AGS, David Lopez, made the following statement: 

“We are very pleased to reach this agreement, which we believe provides our stockholders with compelling, certain cash value. Joining forces with Brightstar represents an exciting new chapter for AGS and our mission to provide exceptional gaming solutions for our operator partners.” 

In his statement, Lopez went on to state the following: 

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

More about Play AGS 

Play AGS, or more commonly referred to as AGS, is a global game supplier of exceptional online casino products: 

“AGS is a global company focused on creating a diverse mix of entertaining gaming experiences for every kind of player. Its customer-centric culture and remarkable growth have helped it become one of the most all-inclusive commercial gaming suppliers in the world.” 

AGS goes on to describe itself as follows: 

“Powered by high-performing slot products, an expansive table products portfolio, highly rated online casino content for players and operators, and differentiated service, the Company believes it offers an unmatched value proposition for its casino partners.” 

More about Brightstar Capital Partners 

Brightstar Capital Partners is a company that prides itself on its ability to invest “at the intersection of capital, opportunity, and people.” 

The company describes itself as follows: 

“Brightstar Capital Partners is a middle market private equity firm focused on investing in industrial, manufacturing, and services businesses where Brightstar believes it can drive significant value with respect to the management, operations, and strategic direction of the business. Brightstar employs an operationally intensive “Us & Us” approach that leverages its extensive experience and relationship network to help companies reach their full potential.”