Brightstar Capital to Take PlayAGS Private Following Regulator Approval
Brightstar Capital Partners has received final approval from the Nevada Gaming Commission (NGC) to acquire PlayAGS in a transaction valued at approximately $1.1 billion. The Commission's green light, granted on Thursday, follows an earlier recommendation by the Nevada Gaming Control Board and clears the way for the private equity firm to complete its acquisition of the global gaming supplier. The deal is expected to close in the early part of the third quarter of 2025.
LISTEN TO THIS ARTICLE:The acquisition will see AGS shareholders receive $12.50 per share in cash, representing a 40% premium over the company's closing stock price on May 8, 2024. The agreement, first announced more than a year ago, reflects Brightstar's intention to expand AGS's operations and market presence both domestically and internationally.
Related: NGCB Approves Apollo Acquisition of Everi and IGT AssetsFounded in 2014, Brightstar focuses on investments in middle-market businesses across industrial, manufacturing, and service sectors. This acquisition marks the firm's entry into the regulated gaming space.
As part of the regulatory review, the Nevada Gaming Commission also approved the licensing of key individuals involved in the transaction, including Andrew Weinberg, the founder and CEO of Brightstar Capital Partners, and David Lopez, who has served as CEO and president of PlayAGS since 2011. The review process was conducted without any reported objections or delays, indicating strong regulatory confidence in the deal's structure and oversight mechanisms.
Weinberg explained that his firm sees substantial opportunity in PlayAGS and described the leadership team as a key asset. He noted that meeting Lopez two years ago left a strong impression and that the team Lopez assembled has played an important role in AGS's evolution. Brightstar views the acquisition as a chance to both reward current shareholders and generate returns for its own investors by supporting a business that it believes has untapped potential.
PlayAGS currently employs about 1,000 people. Under Lopez's leadership, the company has diversified geographically since its early days in Oklahoma. Today, 15% to 18% of AGS staff are based in Las Vegas, while other offices span international locations, including Israel, Australia, and other parts of the US.
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Lopez credited Apollo Global Management with initiating the transformation of AGS when it acquired the company in 2013 and later took it public in 2018. Apollo exited its position in 2022.
With Brightstar's investment, Lopez indicated that AGS is now positioned to make targeted advancements in research and development, enhance operational capabilities, and attract top-tier talent. These efforts are expected to support the continued development of innovative products and help the company expand its footprint across international markets. He emphasized that much of the anticipated growth would occur in Las Vegas and other US offices.
Weinberg, whose experience in gaming dates back three decades to his time at Morgan Stanley, said he worked on transactions, including the sale of the Primm family's Nevada properties to MGM Resorts International. He noted that his familiarity with the gaming industry and his appreciation for Nevada's business environment contributed to Brightstar's confidence in pursuing the AGS acquisition.
Members of the NGC expressed support for the transaction during the hearing, signaling broad regulatory approval of Brightstar's entry into the gaming sector and its plans to support AGS's ongoing expansion and innovation strategy.
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