Inspired Entertainment has made a $370m offer to acquire PlayAGS.
The news was first reported by Reuters but PlayAGS has since confirmed it received an offer from a third party.
The gaming equipment provider has offered $10 per share in cash to acquire the slot machine maker. PlayAGS shares ended trading on Thursday at $6, jumping 25% on Friday upon the offer to $7.52.
While Inspired Entertainment declined to comment on the matter, PlayAGS confirmed in a statement that it had received a proposal, noting that it did not accept the offer but remained in preliminary discussions about a potential deal. The group added that no transaction was certain.