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PlayAGS, Inc. President and CEO David Lopez celebrates his company’s initial public offering on January 26, 2018 on the New York Stock Exchange (NYSE) in New York, USA. REUTERS/Brendan McDermid
Aug 12 (Reuters) – Gaming equipment provider Inspired Entertainment (INS.O) Slot machine maker PlayAGS Inc has been offered $370 million (AGS.N)a person familiar with the matter said on Friday.
Inspired has offered $10 per share in cash for PlayAGS, the sources said. PlayAGS shares closed at $6 on Thursday. They rose 31% to $7.88 in New York trading Friday afternoon on the news.
It was impossible to say whether PlayAGS would negotiate or strike any deal with Inspired Entertainment, the source added, requesting anonymity because the matter is confidential.
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Inspiration Entertainment did not immediately respond to a request for comment. PlayAGS declined to comment.
Las Vegas-based PlayAGS manufactures gaming tables and interactive solutions for gaming companies.Backed by private equity firm Apollo Global Management Inc (APO.N)launched in 2018.
The casino gaming industry and its suppliers have been hit hard by the COVID-19 pandemic, and PlayAGS is now worth one-fifth of its 2019 market valuation.
However, the company is on the mend as gaming activity and travel rebound, reporting quarterly revenue of $76.6 million this week, beating analysts’ expectations.
According to its website, Inspired Entertainment offers gaming solutions, including virtual sports and mobile gaming, in casinos and bars in more than 35 jurisdictions. Its market cap is close to $400 million.
The New York-based company reported a 72% jump in quarterly revenue to $71.3 million this week as its business rebounded from pandemic lockdowns.
On an analyst call Wednesday, Inspired Entertainment Chief Financial Officer Stewart Baker said the company is actively considering some mergers and acquisitions.
“If M&A is strategically aligned with what we’re trying to do, we’re certainly willing to put capital into M&A. And there seems to be a lot of things around right now presenting themselves as possibilities,” Baker said.
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Reporting by Svea Herbst-Bayliss in Boston and Krystal Hu in New York; Additional reporting by Greg Roumeliotis in New York; Editing by David Holmes and Josie Kao
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