Under the deal, Signing Day Sports will acquire between 95% and 99% of the issued and outstanding shares of Dear Cashmere Group Holding Company. Dear Cashmere operates under the Swifty brand.
The deal is structured as all equity. Signing Day Sports will acquire a percentage of Swifty through issuing securities to Swifty’s controlling stockholders. It will not be required to make any cash payment to Swifty in connection with the acquisition.
Signing Day Sports runs the Signing Day Sports app and platform, which supports high school athletes in the recruitment process. However, it has set out plans to move into gambling, with Swifty the first of several expected acquisitions.
Led by CEO James Gibbons, Swifty primarily supplies software to online gambling operators. It holds licences in the UK, Ireland, South Africa and Curaçao. It also serves licensed clients in online sports betting and casino gaming across several markets.
Should the deal proceed, Swifty will continue to run under its current management team, led by Gibbons. Swifty will trade on NYSE American, with Signing Day Sports becoming a subsidiary of the publicly listed company. Gibbons will become CEO of both entities.
Both Signing Day Sports and Swifty are confident the acquisition could close as early as next month.
Acquisition will create “exciting global sports technology”
Signing Day Sports CEO Daniel Nelson says the acquisition marks the start of the company’s new growth strategy. This will focus on the sports betting and casino spaces.
“It was clear from the beginning that both Signing Day Sports and Swifty had great alignment and synergy,” Nelson said “I believe we can build an exciting global sports technology platform together.
“This marks the start of our new growth strategy of buying and building sports technology and casino gaming companies and other companies that are synergistic with our business.
“We both recognise there is a lot of hard work and important decisions still to be made, but we are confident that together, we will make powerful decisions that will build Signing Day Sports into a leading global sports technology company.”
Swift eyes “rapid growth”
Gibbons also welcomes the deal, saying Swifty is “perfectly” set for rapid growth.
“Our team has worked tirelessly over the past four years to develop and grow the business organically in a profitable and cash positive manner with no debt and minimal dilution, in a highly regulated sector, obtaining numerous licenses and regulatory approvals globally which we believe demonstrates our ability to successfully execute a dynamic business plan in multiple jurisdictions,” Gibbons said.
“After three years of software development and millions of dollars of investment, the company is now perfectly positioned for rapid growth and our acquisition by Signing Day Sports provides Swifty the platform to execute its growth plans.”
Original article: https://igamingbusiness.com/strategy/ma/signing-day-sports-swifty-acquisition/
