In its latest filing, PlayAGS says negotiations with Inspired have concluded without a transaction.
The company does not comment further, but its share price has now plummeted as a result of the failed merger.
On 7 September 2022, PlayAGS stock prices were valued at $0.761 per share, falling 20% to $0.607 a day later.
In August, Gambling Insider reported that PlayAGS rejected a $370m bid from Inspired, but both parties would remain in discussions over a deal.
At the time, PlayAGS said its board was fully committed to focusing on the best interests of stakeholders and would review any proposal received.
News that the supplier was in talks to merge with Inspired resulted in its stock rising 34%. Now, however, the reverse has happened with PlayAGS’ stock falling as a result of the deal falling through.
August also saw the supplier post its first net profit since 2019 in its Q2 2022 results. It posted an increased adjusted EBITDA of 6% for the quarter, with a 40% increase in equipment sales domestically.
The company also generated $1.5m of net income for Q2, compared to a net loss of $3.9m reported for the prior year period. PlayAGS attributed this increase to improved operating performance.
At the time, PlayAGS President David Lopez said: "Our second quarter results reflect the growing returns we are realising as a result of the significant investments made into our R&D, sales, and product management teams over the past 24 months."
