Signing Day Sports Inc. has announced a transformative acquisition of Swifty Global, a cutting-edge technology firm specializing in sports betting and gambling technologies. The Stock Purchase Agreement (SPA) will see Signing Day Sports acquire 99.13% of Swifty Global's outstanding capital stock, marking a significant strategic move in the competitive sports technology and gambling markets.
The merger represents a calculated expansion strategy for both companies, with Swifty Global bringing impressive financial performance and global market potential to the partnership. For the fiscal year ending December 31, 2023, Swifty Global reported revenues exceeding $128 million and a net profit of approximately $2.44 million, despite substantial investments of nearly $3.1 million in software development and licensing.
Daniel Nelson, CEO of Signing Day Sports, highlighted the strategic rationale behind the acquisition, emphasizing anticipated benefits including operational efficiency improvements, cost reductions of over 50%, and accelerated product development. The merger is expected to enhance user growth, retention, and create new revenue opportunities, with a specific focus on expanding into emerging markets across Europe, Africa, and the Middle East.
Under the terms of the agreement, the sellers will receive shares representing 19.99% of Signing Day Sports' issued and outstanding common stock. Post-transaction, Signing Day Sports' legacy shareholders will retain approximately 8.24% of the company's shares, with the remaining 91.76% issued to the sellers and other stockholders.
A key aspect of the merger involves leadership integration. James Gibbons, currently CEO of Swifty Global, will become CEO of Signing Day Sports and remain CEO of Swifty Global. The companies' boards will be restructured to include representatives from both organizations, ensuring a balanced approach to governance.
The acquisition is subject to several conditions, including Nasdaq approval and stockholder consent. Both companies are committed to raising at least $2 million in financing to support operational needs and resolve outstanding liabilities.
This strategic merger represents a significant milestone for both Signing Day Sports and Swifty Global, positioning them to leverage combined technological capabilities, expand global market presence, and drive innovation in the sports betting and technology sectors.
