Alta Global Group Acquires Hype, an All-In-One Digital Marketing Platform, to Assist in Reaching 640 Million MMA Fans

Rhea-AI Summary

Alta Global Group has acquired Hype, a digital marketing platform, aiming to transform the martial arts and combat sports sector. Hype's platform, which has seen over $40 million in payments processed and boasts over 4 million contacts, will now integrate with Alta's ecosystem. This acquisition is expected to accelerate Alta's technology roadmap by 18 months, reduce product development overheads, and create new subscription revenue opportunities. Hype's mobile-first solution caters to small business owners, particularly gym operators, by offering functionalities such as mobile website building, email, and SMS marketing, and integrated payment systems. Alta aims to leverage Hype's technology to enhance its offerings, potentially boosting revenues for its 500 partner gyms and thousands of coaches and athletes.

Positive

• Acquisition accelerates Alta's technology roadmap by 18 months.
• Reduces product development overhead, saving millions in technology capex.
• Creates new subscription revenue opportunities.
• Hype has processed over $40 million in payments and collected over 4 million contacts.
• Hype generates approximately $200,000 per annum in recurring revenue.
• Potential to boost small business revenue, especially for combat sports gyms.
• Brings in-house technology expertise to Alta, previously outsourced.
• Increases Alta's penetration into the $100 billion+ small business software market.

Negative

• Undisclosed acquisition cost adds uncertainty.
• Hype's current annual recurring revenue of $200,000 may be considered low against the investment.
• Integration risks and potential challenges in merging Hype’s platform with Alta’s existing systems.
• Potential dilution of focus from martial arts and combat sports to broader small business markets, may dilute brand identity.

Insights

Financial Analyst

Alta Global Group's acquisition of Hype signals a strategic move aimed at augmenting its technology and revenue capabilities. By integrating Hype's digital marketing platform, Alta stands to benefit significantly from cost synergies and enhanced revenue streams. Notably, Hype's platform had already processed $40 million in payments and generated $200,000 annually in recurring revenue. These figures underscore the platform's proven effectiveness and potential to boost Alta's subscription revenue opportunities.

Moreover, the acquisition is expected to speed up Alta's technology roadmap by at least 18 months, while saving millions in technology capital expenditure and development costs. This is a substantial reduction in overhead, likely contributing positively to Alta's bottom line in both the short and long term. From a financial perspective, these developments are highly positive, providing Alta with an opportunity to grow its market share in the combat sports sector.

Market Research Analyst

The acquisition of Hype aligns well with Alta's ambition to convert 640 million MMA fans to active participants. Hype's versatile platform, which combines tools like a mobile website builder, email and SMS marketing capabilities and payment processing, is a perfect fit for the small business ecosystem that combat sports gyms operate in. The platform's ability to handle multiple product categories gives Alta a competitive edge in a market that exceeds $100 billion.

By leveraging Hype's expertise and established technology, Alta can increase its penetration into the martial arts and combat sports market, which comprises over 45,000 academies in the US alone. Additionally, the potential to target other small businesses further extends Alta's market reach. This strategic move is likely to enhance customer acquisition and retention, important for sustainable growth.

Tech Expert

Integrating Hype's state-of-the-art technology into Alta's existing platform is a transformative step. The mobile-first approach of Hype's platform is particularly relevant for gym owners and coaches who manage their operations on the go. This makes the technology not only convenient but also highly effective in streamlining business operations. The inclusion of features like email and SMS marketing, coupled with seamless payment processing, provides a comprehensive toolkit that can significantly boost gym revenues.

Furthermore, the acquisition brings valuable technology expertise in-house, replacing previously outsourced development. This will likely enhance Alta's ability to innovate and adapt quickly, offering cutting-edge solutions tailored to the needs of combat sports gyms. In the long term, this in-house expertise could be pivotal in maintaining a competitive edge in a fast-evolving market.

Highlights:

• Hype is a subscription-based mobile marketing platform designed to help small businesses grow in today's age of social media.
• Hype's software platform strengthens Alta's vision to convert 640 million MMA fans to participants by providing invaluable tools to our gym owner, coach, and athlete partners to not only grow their revenues, but also operate more efficiently, save costs and enhance the offerings to their members and community.
• This acquisition is expected to accelerate Alta's technology roadmap, bringing forward new subscription revenue opportunities to Alta, whilst creating cost synergies by materially reducing product development overhead and bringing valuable technology expertise, skills and talent into the business.
• Hype invested over $22 million in developing and launching its software platform.
• Hype has processed over $40 million in payments through its platform, collected over 4 million contacts for current and previous customers, and generates revenue from recurring subscriptions and payment processing fees.

SYDNEY, AUSTRALIA / ACCESSWIRE / May 14, 2024 / Alta Global Group (NYSE American:MMA) ("Alta" or the "Company") a pioneering technology company dedicated to transforming the landscape of martial arts and combat sports training proudly announces its strategic acquisition of Hype for an undisclosed sum.

Hype, previously funded by venture capital, had invested over $22 million in launching the Hype platform, creating a highly scalable digital marketing platform recognized for its remarkable product suite to help small businesses throughout the world grow in today's age of social media.

This innovative product seamlessly blends the functionalities of a mobile website builder, such as Linktree, with core email and SMS marketing capabilities of CRM systems like HubSpot, alongside an integrated payment system. Notably, this mobile-first solution caters perfectly to owner-operators who manage much of their business on their phones, ideal for combat sports gyms. Hype reimagines the future of multiple product categories simultaneously across a $100 billion+ market for small business software. Hype has processed over $40 million in payments through its platform, helped businesses collect over 4 million contacts and is currently generating approximately $200,000 per annum in recurring revenue.

Hype's state-of-the-art technology offers user-friendly tools tailored to boost revenue streams, particularly beneficial for small businesses like combat sports gyms. By integrating this technology into its existing platform, Alta estimates this transaction could accelerate its technology roadmap by at least 18 months, delivering many millions of dollars in technology capex and development cost savings, while reducing customer acquisition costs for Alta partner gyms.

Alta CEO and founder Nick Langton underscored the significance of the acquisition: "This acquisition represents a pivotal moment for Alta. To be able to put this technology in the hands of our valued gym partners we believe will be a game changer for them to grow revenues and more effectively engage with their members. We expect this transaction to materially accelerate Alta's mission to convert more fans to participants and drive more shared revenue opportunities. Under Nick Chen's leadership, the Hype team have created a market-leading platform that we believe is perfect for owner operators who run their businesses on their feet from their mobile. We believe this is the perfect tool to help combat sports gym owners supercharge their business."

Alta intends to distribute the Hype product offering across its extensive community of over 500 partner gyms and thousands of coaches and athletes globally across the Alta Platforms. We believe this acquisition presents a significant opportunity to launch a new SaaS offering for our gym, coach, and talent partners, further increasing the embedded revenue opportunity that exists from each gym, coach and talent relationship on our platform. Alongside Alta's existing product offering, the Hype products are expected to accelerate Alta's penetration into the substantial martial arts and combat sports market, with over 45,000 martial arts and combat sports academies in the US alone.

Moreover, Hype's technology solution extends well beyond the martial arts and combat sports sector, with proven utility and established customers, unlocking further opportunities to target small businesses globally, as well as the potential application to other local and community sports.

With Hype's expert team now joining Alta, the company gains invaluable in-house technology expertise, replacing the previously outsourced team and fortifying Alta's capability to deliver cutting-edge technology solutions for the combat sports sector without additional costs.

Langton concluded, "We are thrilled about the boundless opportunities that await us with the acquisition of Hype. With this team and technology, we are poised to redefine combat sports engagement and unlock new revenue streams for Alta and gyms across the globe."

For more information, visit Alta Global Group's corporate website at www.altaglobalgroup.com or for more information on Hype visit https://hype.co/

ABOUT ALTA GLOBAL GROUP LIMITED

Alta Global Group Limited is a technology company that is enabling the global martial arts and combat sports industry to maximize the monetization opportunities available to the sector by increasing consumer participation in the sport and building upon existing community offerings within the sector. While the Company believes martial arts and combat sport gyms have a superb in-gym product, they are ripe for transformation when it comes to building sales channels, enhancing customer onboarding, optimizing engagement and driving the growth and retention of members and membership revenues within their gym communities. For more information, please visit https://www.altaglobalgroup.com.

Forward Looking Statements

Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include, but are not limited to, statements relating to the Company's operations and business strategy and the Company's expected financial results. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on management's current expectations and are subject to substantial risks, uncertainty and changes in circumstances. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and other discussed in the "Risk Factors" section set forth in the Company's registration statement on Form F-1 filed with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and, except as required by federal securities laws, the Company specifically disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Investor Contact:

Dave Gentry
RedChip Companies, Inc.
C: 1-407-491-4498
T: 1-407-644-4256
E: MMA@redchip.com

SOURCE: Alta Global Group

View the original press release on accesswire.com

FAQ

What is Alta Global Group's recent acquisition?

Alta Global Group has recently acquired Hype, a digital marketing platform.

What is Hype's contribution to Alta Global Group?

Hype's platform will accelerate Alta's technology roadmap, reduce development costs, and open new subscription revenue opportunities.

How much has Hype processed in payments?

Hype has processed over $40 million in payments through its platform.

How many contacts has Hype collected?

Hype has collected over 4 million contacts for current and previous customers.

What annual revenue does Hype generate?

Hype generates approximately $200,000 per year in recurring revenue.

What benefits does Alta expect from Hype's acquisition?

Alta expects accelerated technology development, cost savings, new revenue opportunities, and enhanced offerings for combat sports gyms.

What market does Alta aim to penetrate with Hype's technology?

Alta aims to penetrate the $100 billion+ market for small business software.

How will Hype's technology benefit small business owners?

Hype's mobile-first solution offers mobile website building, email and SMS marketing, and integrated payment systems, boosting revenues for small businesses.