Inspired Makes $370 Million Offer for PlayAGS

Inspired Entertainment has made a $370 million cash offer to acquire slot manufacturer PlayAGS, per Reuters. Neither company has commented on the offer, but the market responded favorably, as PlayAGS shares rose over 30 percent August 12. More details are expected in the coming days.

Inspired Makes $370 Million Offer for PlayAGS

Gaming manufacturer Inspired Entertainment (INSE) has offered $370 million, or $10 per share in cash, to acquire slot maker PlayAGS. The offer was first reported by Reuters.

That said, the offer is just that—no deal is said to be imminent at this time, and PlayAGS has not yet engaged in further negotiations with Inspired. Immediately after news of the offer broke August 12, PlayAGS shares soared 31 percent to $7.88, up from the previous day’s closing price of $6. Alternatively, Inspired share price declined almost 6 percent to $12.56.

PlayAGS has commented publicly on the offer, and Inspired said it didn’t comment on rumors, but in the second quarter conference call last week, INSE CFO Stewart Baker said that the company was actively looking at acquisition opportunities.

Nevada-based PlayAGS, which first went public back in 2018, is backed by investment firm Apollo Global Management, which also operates the Venetian in Las Vegas. Due to Covid-related impacts, the company is worth just 20 percent of its 2019 market value, but is steadily climbing back, having reported $76.6 million in second-quarter earnings. PlayAGS products include slot games and innovative table game.

PlayAGS is led by CEO David Lopez and has a market cap of $279.34 million.

Inspired, which is based in New York, has a market value of approximately $400 million, providing gaming solutions in over 30 jurisdictions. Its main products are virtual sports games. It recently reported $71.3 million in quarterly revenue.

Inspired Entertainment is led by CEO Lorne Weil, a former CEO at Scientific Games. The company has a market cap of $337.75 million.

During an earnings call on August 10, Inspired CFO Stewart Baker had alluded to potential growth possibilities for the company.

“We are certainly willing to use capital for M&A if it’s something that strategically fits with what we are trying to do,” said Baker. “And there seem to be a lot of things around right now presenting themselves as possibilities.”

Further details of the offer and subsequent negotiations are expected in the coming days.