Inspired Entertainment responds as $370m PlayAGS bid report emerges

Inspired Entertainment responds to $370m PlayAGS bid speculation
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Inspired Entertainment has refused to comment on ‘speculation’ following a report from Reuters that claimed the lottery and gaming provider tabled a $370m bid to acquire slot machine maker PlayAGS.

The UK-based news agency has reported that an offer of $10 per share in cash has been presented by Inspired, with PlayAGS confirming that it had rejected a proposal, though they remain in preliminary discussions regarding a potential deal.

PlayAGS shares had ended trading on Thursday at $6 before jumping more than 25% to $7.52 at the close of Friday.

Inspired have remained tight-lipped on a potential deal, though, as the firm issued a statement on Friday. It read: “Inspired Entertainment, a leading B2B provider of gaming content, technology, hardware and services, today noted recent speculation in the press and financial markets regarding a potential transaction with PlayAGS.

“As a matter of policy, Inspired does not comment on market rumours or speculation.”

Inspired Chief Financial Officer Stewart Baker did, however, reveal on Wednesday that his firm was ‘actively looking’ at a number of M&A activities.

“We are certainly willing to use capital for M&A if it’s something that strategically fits with what we are trying to do,” Baker said.

“And there seem to be a lot of things around right now presenting themselves as possibilities.”

Earlier this year, Inspired published its financial results for the first quarter of 2022, reporting a significant rise in revenue.

Inspired’s total revenue amounted to $60.6m in the three months ended March 31, an increase of 166% (Q1 2021: $22.8m).

“The North American online market remains a tremendous opportunity for Inspired,” Executive Chairman Lorne Weil commented at the time.

Meanwhile, Las-Vegas based PlayAGS has been hit hard by the effects of the COVID-19 pandemic, with the company said to be worth one-fifth of its 2019 market valuation.

However, PlayAGS is showing signs of recovery after reporting $76.6m in quarterly revenue last week.