Signing Day Sports Inc. (NYSE American: SGN) has taken a significant step towards expanding its global footprint by acquiring Swifty Global, a leading online sports and casino technologies company. This acquisition, finalized through a Stock Purchase Agreement, allows Signing Day Sports to own 99.13% of Swifty Global's issued and outstanding capital stock. The deal is not just a testament to Swifty Global's robust financial health, with revenues surpassing $128 million and a net profit of around $2.44 million in the last fiscal year, but also highlights the strategic intent behind the merger.
The merger is expected to bring about substantial operational synergies, including a more than 50% reduction in costs, faster product development cycles, and enhanced user growth and retention, particularly in emerging markets across Europe, Africa, and the Middle East. Daniel Nelson, CEO of Signing Day Sports, has lauded the merger for its transformative potential, emphasizing the combined strengths of both companies in leveraging technology to innovate in the sports betting and recruitment sectors.
Under the terms of the agreement, the sellers will receive shares equivalent to 19.99% of Signing Day Sports' issued and outstanding common stock. James Gibbons, the current CEO of Swifty Global, is set to take over as the CEO of Signing Day Sports and will also join its board of directors, marking a new chapter in the company's leadership. The transaction, however, is contingent upon meeting certain conditions, including regulatory approvals and compliance with Nasdaq listing requirements. Additionally, both companies are planning to raise at least $2.0 million to bolster ongoing operations and address any outstanding liabilities.
Post-acquisition, Swifty Global will function as a subsidiary of Signing Day Sports, with its financial outcomes being fully integrated into the parent company's operations. This strategic merger is poised to create a powerhouse in the sports technology domain, combining Swifty Global's proven track record in online sports and casino technologies with Signing Day Sports' expertise in recruitment technology. James Gibbons has expressed his enthusiasm about the merger, acknowledging the hard work of his team and looking forward to the collaborative opportunities that lie ahead.
