inspired Entertainment makes $370 million takeover offer for slot machine maker PlayAGS

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inspired Entertainment makes $370 million takeover offer for slot machine maker PlayAGS

According to people familiar with the matter, Inspired Entertainment has made a $370 million offer to acquire slot machine maker PlayAGS Inc.

Inspired has offered $10 per share in cash to acquire PlayAGS, according to the sources. PlayAGS shares ended up trading at $6 on Thursday.

There is no certainty that PlayAGS will engage in negotiations with Inspired Entertainment or that any deal will be reached, according to sources, who asked for anonymity because the matter is confidential.

Inspired Entertainment didn't respond immediately to requests for comment. PlayAGS didn't want to say anything.

Las Vegas-based PlayAGS makes gaming tables and interactive solutions for gaming houses. In 2018 it went public, backed by private equity firm Apollo Global Management Inc.

The casino gaming industry and its vendors have been hit hard by the COVID 19 flu, with PlayAGS now worth a fifth of what the market valued it at in 2019.

The company reported $76.6 million in quarterly revenue this week, beating analyst estimates, as gaming activities and travel rebound.

Inspired Entertainment provides gaming solutions in casinos and bars in more than 35 countries, including virtual sports and mobile gaming. The Inspired Entertainment Chief Financial Officer Stewart Baker said the firm was looking at a number of M&A activities and was actively looking at them on an analyst call on Wednesday.

If it fits in with what we are trying to do, we are willing to use capital for M&A. There seem to be a lot of things around right now that are presenting themselves as possibilities, said Baker.