Tech firm to acquire £75m turnover sports gambling company
A Leeds-based sports gambling business is to be bought by a technology company operating in the financial and sports betting sectors.
Dear Cashmere Holding Company, known as Swifty Global, has reached an agreement to acquire Goldchip Limited.
Swifty says the deal should speed up its own route to market and give it “critical mass” to drive its strategic growth plans, which include up listing to a major exchange “as soon as possible.”
Goldchip had revenues of $94m/£75m and a net profit of $1.75m/£1.4m in its 2021/22 financial year, a year which included substantial one-off costs.
It employs 14 permanent staff operating out of Leeds and Swifty has hired three UK industry experts to oversee the development of its Sports Book. The Goldchip team will be complemented by Swifty’s 14-member in-house software development and implementation team.
Goldchip has nearly 750 high net worth VIP clients, including many celebrities and sports stars. Swifty says it hopes to grow this VIP sports book to 900 clients by the end of 2022.
Simultaneously, Swifty will introduce its sports predictions app and casino in the near future to the Goldchip clients.
The acquisition is being funded partly in cash, restricted shares and vendor finance.
A Swifty spokesman explained: “Goldchip recently faced a particular compliance problem with the UK Gambling Commission which led to a temporary suspension of its gambling license.
“The acquisition of assets by Swifty, which holds the required UK gambling license, resolves this problem.
“Through an almost seamless transition, Goldchip’s clients are allowed to migrate to Swifty’s UK gambling license with immediate effect.
“Swifty is confident in its ability to grow Goldchip’s revenue and bottom-line profit substantially during 2022 and onwards.
“By leveraging its own in-house software technology, Swifty expects to significantly reduce Goldchip’s operating costs, thereby increasing profitability, and freeing up cashflow for growth.”
Swifty Global CEO, James Gibbons, added: “The acquisition is exactly the critical mass we need to put us on the fast track towards our bigger plans.”
Swifty Global has developed two mobile apps for sports predictions and a digital wallet which encompasses Artificial Intelligence and Cryptocurrency/Blockchain Transactions.
The company recently received its UK and Curacao gambling licenses and has been in final preparations for the launch of its Unique Sports Predictions app in Britain.