2024-05-29 08:53:28 ET
Summary
- PlayAGS, Inc. has signed a merger agreement with Brightstar Capital Partners for $12.5 per share.
- AGS is a provider of betting machines and gaming-related services with potential for growth in the digital entertainment business.
- PlayAGS, Inc. could be worth more than the proposed valuation, and competitors may launch new offers, making it a good investment opportunity.
- In my view, these termination fees are not large for a company like PlayAGS, Inc. If other competitors decide to buy the company, the termination fee may not be an issue.
- Competitors trade at 9x, and even 11x forward EBITDA. PlayAGS, Inc. appears to be trading not far from 5.6x.
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For further details see:
PlayAGS: Why Brightstar Capital's Acquisition Makes The Stock A Buy