Signing Day Sports Identifies Synergies from Acquisition of Swifty Global, Expected to Drive Accelerated Revenue Growth, Cost Savings, and Global Expansion
Signing Day Sports (NYSE American: SGN) has provided an update on its financial position and plans to acquire Swifty Global. Key highlights include:
1. Extinguishment of $0.6 million in convertible notes, improving the company's financial position.
2. Acquisition of 95-99% of Swifty Global, a profitable company with $128 million in revenue for FY 2023.
3. Expected synergies include cost efficiency, revenue growth in SaaS, new revenue streams, and global market expansion.
4. Swifty's in-house engineering team is anticipated to reduce Signing Day Sports' operating costs by over 50%.
5. Plans to enhance user engagement through gamification elements and expand into new sports markets.
The acquisition is expected to drive accelerated growth, cost savings, and global expansion for both companies.
Signing Day Sports (NYSE American: SGN) ha fornito un aggiornamento sulla sua posizione finanziaria e sui piani per acquisire Swifty Global. I punti salienti includono:
1. Estinzione di 0,6 milioni di dollari in note convertibili, migliorando la posizione finanziaria dell'azienda.
2. Acquisizione del 95-99% di Swifty Global, un'azienda redditizia con 128 milioni di dollari di fatturato per l'anno fiscale 2023.
3. Le sinergie previste includono efficienza dei costi, crescita dei ricavi nel SaaS, nuove fonti di reddito e espansione nel mercato globale.
4. Si prevede che il team di ingegneri interno di Swifty ridurrà i costi operativi di Signing Day Sports di oltre il 50%.
5. Piani per aumentare l'engagement degli utenti attraverso elementi di gamification e espandere in nuovi mercati sportivi.
L'acquisizione dovrebbe portare a una crescita accelerata, risparmi sui costi e a un'espansione globale per entrambe le aziende.
Signing Day Sports (NYSE American: SGN) ha proporcionado una actualización sobre su posición financiera y planes para adquirir Swifty Global. Los aspectos más destacados incluyen:
1. Extinción de 0.6 millones de dólares en notas convertibles, mejorando la posición financiera de la empresa.
2. Adquisición del 95-99% de Swifty Global, una empresa rentable con 128 millones de dólares en ingresos para el año fiscal 2023.
3. Las sinergias esperadas incluyen eficiencia de costos, crecimiento de ingresos en SaaS, nuevas fuentes de ingresos y expansión en el mercado global.
4. Se anticipa que el equipo de ingeniería interno de Swifty reducirá los costos operativos de Signing Day Sports en más del 50%.
5. Planes para mejorar el compromiso del usuario a través de elementos de gamificación y expandirse a nuevos mercados deportivos.
Se espera que la adquisición impulse un crecimiento acelerado, ahorros de costos y expansión global para ambas empresas.
Signing Day Sports (NYSE American: SGN)는 재무 상태와 Swifty Global 인수 계획에 대한 업데이트를 제공했습니다. 주요 하이라이트는 다음과 같습니다:
1. 60만 달러 규모의 전환사채를 소각하여 회사의 재무 상태가 개선되었습니다.
2. Swifty Global의 95-99%를 인수하며, 2023 회계연도에 1억 2800만 달러의 매출을 기록한 수익성 있는 기업입니다.
3. 기대되는 시너지는 비용 효율성, SaaS에서의 매출 성장, 새로운 수익원, 글로벌 시장 확장을 포함합니다.
4. Swifty의 내부 엔지니어링 팀은 Signing Day Sports의 운영 비용을 50% 이상 절감할 것으로 예상됩니다.
5. 게임화 요소를 통해 사용자 참여를 강화하고 새로운 스포츠 시장으로 확대할 계획입니다.
이번 인수는 두 회사 모두의 가속 성장, 비용 절감 및 글로벌 확장을 촉진할 것으로 기대됩니다.
Signing Day Sports (NYSE American: SGN) a fourni une mise à jour sur sa situation financière et ses projets d'acquisition de Swifty Global. Les points clés incluent :
1. Éteinte de 0,6 million de dollars en obligations convertibles, améliorant la position financière de l'entreprise.
2. Acquisition de 95-99% de Swifty Global, une entreprise rentable avec 128 millions de dollars de chiffre d'affaires pour l'exercice 2023.
3. Les synergies attendues comprennent l'efficacité des coûts, la croissance des revenus dans le SaaS, de nouvelles sources de revenus et une expansion sur le marché mondial.
4. L'équipe d'ingénierie interne de Swifty devrait réduire les coûts opérationnels de Signing Day Sports de plus de 50 %.
5. Des plans pour améliorer l'engagement des utilisateurs grâce à des éléments de gamification et s'étendre à de nouveaux marchés sportifs.
L'acquisition devrait stimuler la croissance accélérée, les économies de coûts et l'expansion mondiale pour les deux entreprises.
Signing Day Sports (NYSE American: SGN) hat ein Update zu seiner finanziellen Lage und den Plänen zur Übernahme von Swifty Global bereitgestellt. Wichtige Punkte sind:
1. Auslöschung von 0,6 Millionen Dollar an wandelbaren Anleihen, was die finanzielle Lage des Unternehmens verbessert.
2. Erwerb von 95-99% von Swifty Global, einem profitablen Unternehmen mit 128 Millionen Dollar Umsatz für das Geschäftsjahr 2023.
3. Erwartete Synergien umfassen Kosteneffizienz, Umsatzwachstum im SaaS-Bereich, neue Einnahmequellen und globale Marktexpansion.
4. Das interne Ingenieurteam von Swifty wird voraussichtlich die Betriebskosten von Signing Day Sports um über 50% senken.
5. Pläne zur Verbesserung der Nutzerbindung durch Gamification-Elemente und Expansion in neue Sportmärkte.
Die Übernahme wird voraussichtlich das beschleunigte Wachstum, Kosteneinsparungen und die globale Expansion beider Unternehmen fördern.
- Extinguishment of $0.6 million in convertible notes, improving financial position
- Acquisition of Swifty Global, a profitable company with $128 million in revenue for FY 2023
- Expected 50% reduction in operating costs through Swifty's in-house engineering team
- Expansion into new global markets including Ireland and South Africa
- Development of new revenue streams, including data feed services for online sports gambling
- Increased user base with plans for accelerated growth in Q4 2024 and 2025
- Enhanced user engagement through gamification elements
- None.
Insights
The acquisition of Swifty Global by Signing Day Sports presents a significant strategic move with potential for substantial financial impact. Key points include:
- Swifty's
$128 million revenue and$2.44 million net profit in 2023 could dramatically boost SGN's financial position. - Expected 50% reduction in operating costs for SGN through Swifty's in-house engineering team.
- Expansion into new markets (Ireland, South Africa) and revenue streams (data feed services) could diversify income sources.
- Extinguishment of
$0.6 million in convertible notes improves SGN's balance sheet.
However, integration risks and execution challenges remain. The success of this acquisition will depend on effective synergy realization and market penetration in new territories.
This acquisition brings significant technological synergies:
- Swifty's engineering team can accelerate SGN's product development and enhance its SaaS model.
- Integration of gamification elements (live scoreboards, fantasy leagues) could boost user engagement and retention.
- Potential for innovative data feed services in sports betting, leveraging SGN's experience with sports datapoints.
- Expansion of SGN's platform to support new sports and markets, increasing its technological footprint.
The combined expertise could lead to a more robust, scalable platform. However, successful integration of disparate technologies and maintaining data integrity across expanded operations will be important challenges to overcome.
This merger opens up significant market opportunities:
- Expansion into established online sports and casino markets in Ireland and South Africa.
- Potential to tap into emerging sports markets without established recruitment models.
- Diversification from U.S. college sports into global markets, including Europe, Africa and the Middle East.
- New revenue streams through data feed services for the online sports gambling industry.
The combined entity could leverage SGN's 10,000+ registered users and Swifty's global reach to create a formidable presence in sports tech. However, navigating different regulatory environments and adapting to varied market needs will be critical for success in this ambitious global expansion.
Signing Day Sports convertible notes fully extinguished, removing
SCOTTSDALE, Arizona, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Signing Day Sports, Inc. (“Signing Day Sports” or the “Company”) (NYSE American: SGN), the developer of the Signing Day Sports app and platform to aid high school athletes in the recruitment process, today provided an update regarding its financial position and its plans to acquire Dear Cashmere Group Holding Company (OTC:DRCR), doing business as Swifty Global (“Swifty”), highlighting the strategic and financial synergies that are expected to drive accelerated growth and operational efficiency for both companies.
Extinguishment of Convertible Notes
As of September 23, 2024, the outstanding convertible senior secured promissory notes of the Company, with an original balance of more than
The improved financial position strengthens the Company’s prospects for growth and future capital raising.
Key Highlights from the Acquisition
As previously announced, Signing Day Sports entered into a binding term sheet to acquire 95
- Strong Financial Performance: Swifty achieved revenues of over
$128 million and a net profit of approximately$2.44 million for the fiscal year ended December 31, 2023, despite significant investments of nearly$3.1 million in software development and licensing. - Global Expansion: Swifty is expanding internationally. Swifty recently acquired licenses to offer a full integrated suite of products in Ireland and South Africa, which are expected to have significant online sports and casino markets with limited competition.
- Fast Development of Revenue Generating Technology: Swifty plans to offer data feed services for the online sports gambling industry in the near future. Swifty has determined that data feed services are expensive and limited in choice, which creates an opportunity for Swifty, and that many sports, like boxing, have limited or no live data feed available to allow real-time betting. The Signing Day Sports team has significant experience working with critical sports datapoints and creating sports measurement technologies, which could assist Swifty in developing this revenue stream.
Strategic Synergies
The integration of Swifty is expected to bring several operational advantages and new revenue opportunities for Signing Day Sports:
- Cost Efficiency: Swifty’s in-house engineering team is expected to reduce Signing Day Sports' operating costs by over
50% , enabling the company to reinvest those savings into growth initiatives. It is also expected to increase the speed at which Signing Day Sports can roll out new products and technological enhancements to its current offering and optimize monetization of the product and user base. - Revenue Growth in SaaS: At their core, both Signing Day Sports and Swifty are SaaS model businesses. Swifty’s scalability, technological resources, and technology initiatives are expected to bolster the growth of Signing Day Sports’ app user base, enhance user retention and provide additional opportunities to monetize renewing subscribers with additional revenue streams.
- New Revenue Streams: Swifty is expected to further expand Signing Day Sports’ current product offering while also broadening the Company’s exposure to new sports and athletes outside the U.S. Signing Day Sports has accumulated more than 10,000 registered users, which it plans to increase at an accelerated rate in the fourth quarter of 2024 and 2025. The Company’s focus is to develop new strategic revenue streams, and improve revenue metrics per user, with the same aim of fully monetizing this growing user base.
- New Market Exposure: Since its beginning as a football student-athlete recruitment platform provider, Signing Day Sports has expanded its platform to support baseball, softball, and men’s and women’s soccer. Swifty is expected to bring exposure to new markets in Europe, Africa and the Middle East, as well as exposure to emerging sports without established recruitment models. The Company anticipates that early adopters in these emerging sports markets are a significant market and plans to broaden its platform to capitalize on these prospective revenue streams.
- Enhanced User Engagement: Swifty’s team is expected to introduce exciting new features to Signing Day Sports, including gamification elements such as live scoreboards, top competitor leaderboards, fantasy leagues and real-time performance tracking, which are designed to boost engagement, organic user acquisition and user retention.
“With Swifty expected to join the Signing Day Sports family, we anticipate being better positioned than ever to deliver an enhanced user experience while accelerating our expansion into new markets,” said Daniel Nelson, CEO of Signing Day Sports. “This acquisition represents a pivotal moment in our growth journey, and we are confident in the significant value it will bring to our platform, collaborators, student-athletes, and stockholders.”
James Gibbons, CEO of Swifty, added, “Swifty is excited to bring our technological capabilities and global reach to the Signing Day Sports platform. Together, we will create new opportunities for student-athletes and coaches worldwide while driving operational efficiencies that will further our mutual goals. We look forward to working with Signing Day Sports as we scale into new markets and continue to innovate for the benefit of our users.”
For further information about Signing Day Sports and Swifty, please see their communication channels listed below:
Website: https://swifty.global
X: @swiftyglobal
Telegram: @swiftyglobal
Email: hello@swifty.global
Website: https://signingdaysports.com
Ecommerce Website: https://signingdayshop.com
Investor Relations Website: https://ir.signingdaysports.com
X: @sdsports
Email: support@signingdaysports.com
Forward-Looking Statements
This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "may," "could," "will," "should," "would," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "project" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, including without limitation, the Company's ability to complete the acquisition of Swifty and integrate its business, the ability of the Company, the sellers and Swifty to enter into definitive stock purchase agreement(s), obtain all necessary consents and approvals in connection with the acquisition, obtain NYSE American clearance of a new initial listing application in connection with the acquisition, obtain shareholder approval of the matters to be voted on at the shareholders’ meeting described in the press release, obtain sufficient funding to maintain operations and develop additional services and offerings, market acceptance of the Company's current products and services and planned offerings, competition from existing online and retail offerings or new offerings that may emerge, impacts from strategic changes to the Company's business on its net sales, revenues, income from continuing operations, or other results of operations, the Company's ability to attract new users and customers, increase the rate of subscription renewals, and slow the rate of user attrition, the Company's ability to retain or obtain intellectual property rights, the Company's ability to adequately support future growth, the Company's ability to comply with user data privacy laws and other current or anticipated legal requirements, and the Company's ability to attract and retain key personnel to manage its business effectively. These risks, uncertainties and other factors are described more fully in the section titled “Risk Factors” in the Company’s periodic reports which are filed with the Securities and Exchange Commission. These risks, uncertainties and other factors are, in some cases, beyond our control and could materially affect results. If one or more of these risks, uncertainties or other factors become applicable, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
Investor Contact:
Crescendo Communications, LLC
212-671-1020
SGN@crescendo-ir.com
FAQ
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