PlayAGS rejects Inspired Entertainment’s $370m bid
PlayAGS has rejected Inspired Entertainment’s offer to buy the company at $10 per share (or $370m total).
The supplier has specified that it is only rejecting this particular offer and will remain in discussions with Inspired.
In a statement, AGS’s Board and management said they are fully committed to focusing on the best interests of the stakeholders, and will therefore carefully review any proposal received.
After news broke that an offer had been submitted, PlayAGS stock went up 34%, from $6.04 to $8.06 Friday, and opened at $8.25 Monday.
When contacted by Gambling Insider, Inspired did not make any comment on the matter.
Earlier this month, AGS reported its first net profit since Q4 2019 and an increased adjusted EBITDA of 6% for Q2 2022. In the same report, AGS showed a 40% increase in the domestic sales of equipment.
The company had generated $1.5m of net income for Q2 2022, compared to a net loss of $3.9m for the prior year period. According to AGS, the increase reflected the improvements in the operating performance.
In addressing the company’s second-quarter financial performance, AGS President and CEO, David Lopez said: “Our second quarter results reflect the growing returns we are realizing as a result of the significant investments made into our R&D, sales, and product management teams over the past 24 months.”
Clearly, this is something that has Inspired its potential buyer – if you’ll pardon the pun – and talks are set to continue for what would form a strong industry combination.
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