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ShiftPixy Announces Execution of Its Second Asset Purchase Agreement to Acquire a Provider of Human Capital to Several Key Industrial Clients Across Western U.S.

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Rhea-AI Summary
ShiftPixy, Inc. (Nasdaq: PIXY) announces the acquisition of a leading human capital provider in the Western U.S. with annual revenue exceeding $50 million and a diverse customer base. The company aims to expand its national market presence through strategic acquisitions and technology leverage.
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The acquisition of a staffing and human resources solutions provider by ShiftPixy marks a strategic move to bolster its position in the Gig Economy. With the target company's reported annual revenue surpassing $50 million and a diverse portfolio of 100 blue-chip customers, this deal could significantly enhance ShiftPixy's market share and revenue streams. The expansion into multiple states also indicates a broader geographical footprint, which could translate into increased market penetration and economies of scale.

It's important to assess the post-acquisition integration process, as this often determines the success of such transactions. Efficient integration can lead to synergies, cost savings and improved services for clients. However, if not managed well, it could lead to operational disruptions and customer dissatisfaction. The impact on ShiftPixy's stock will likely be contingent on the market's perception of the acquisition's potential to drive long-term growth and profitability.

ShiftPixy's execution of this asset purchase agreement signals a positive outlook for its financial growth. The acquisition could lead to a substantial increase in ShiftPixy's earnings and market capitalization. With the seller's impressive revenue figures and client base, investors will be keen on the deal's impact on ShiftPixy's future earnings per share (EPS).

However, the financial health of the acquired company, the purchase price and how the acquisition is being financed are critical details that investors need to consider. If the acquisition is accretive, it will be favorable for shareholders, but if it's dilutive, it might raise concerns. The company's strategy to continue a national roll-up through 2024 suggests a bullish approach to growth, which could be attractive to investors looking for aggressive expansion in the human capital space.

In transactions of this nature, regulatory compliance and due diligence are key factors. The acquisition must pass antitrust regulations to ensure that it does not create an unfair market advantage or negatively impact competition. Additionally, thorough due diligence is necessary to uncover any potential legal liabilities that could arise from the seller's existing contractual obligations or workforce-related issues.

ShiftPixy's focus on leveraging technology within the Gig Economy also raises questions about data privacy and intellectual property rights. As they integrate new assets, ensuring compliance with data protection laws and safeguarding any proprietary technology will be critical to avoid legal complications that could undermine the perceived benefits of the acquisition.

MIAMI--(BUSINESS WIRE)-- ShiftPixy, Inc. (Nasdaq: PIXY) (“ShiftPixy” or the “Company”), a Florida-based national human capital provisioning enterprise which designs, manages, and sells access to a disruptive, revolutionary platform that facilitates employment in the rapidly growing Gig Economy, today announces the execution of its second asset purchase agreement to acquire a leading provider of human capital across the Western U.S.

The Seller is a market leader providing recruitment, staffing and Human Resources solutions with a deep presence in the Western region, growing to an impressive annual revenue exceeding $50 million with a significant, diverse portfolio of 100 blue chip customers. The company’s strategic operations span multiple states with offices optimally located to serve its valued customer base and loyal contingent workforce of over 10,000 temporary employees.

"This next in our series of acquisitions, continues our accelerated growth goals for ShiftPixy as we rapidly expand our national market presence,” said Scott Absher, CEO of ShiftPixy. “Our goal is to continue our national roll-up through 2024 and leverage our technology advantage in today’s world of work."

About ShiftPixy

ShiftPixy is a disruptive human capital services enterprise, revolutionizing employment in the Gig Economy by delivering a next-gen platform for workforce management that helps businesses with shift-based employees navigate regulatory mandates, minimize administrative burdens and better connect with a ready-for-hire workforce. With expertise rooted in management’s more than 25 years of workers’ compensation and compliance programs experience, ShiftPixy adds a needed layer for addressing compliance and continued demands for equitable employment practices in the growing Gig Economy.

Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. These forward-looking statements include, among other things, statements regarding the anticipated use of proceeds from the private placement, the anticipated closing date of the private placement and the anticipated filing and effectiveness date for a registration statement related to the resale of the common shares and common shares underlying warrants from the private placement. Although such forward-looking statements are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate. If any of the risks or uncertainties, including those set forth below, materialize or if any of the assumptions proves incorrect, the results of the Company, could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties include, but are not limited to, risks associated with the nature of the Company’s business model; the Company’s ability to execute its vision and growth strategy; the Company’s ability to attract and retain clients; the Company’s ability to assess and manage risks; changes in the law that affect the Company’s business and its ability to respond to such changes and incorporate them into its business model, as necessary; the Company’s ability to insure against and otherwise effectively manage risks that affect its business; competition; reliance on third-party systems and software; the Company’s ability to protect and maintain its intellectual property; and general developments in the economy and financial markets. These and other risks are discussed in the Company’s filings with the SEC, including, without limitation, its Annual Report on Form 10-K, and its periodic and current reports on Form 10-Q and Form 8-K. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The information in this press release shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and will not be deemed an admission as to the materiality of any information that is required to be disclosed solely by Regulation FD. Further information on these and other factors that could affect the financial results of the Company, is included in the filings we make with the SEC from time to time. These documents are available on the “SEC Filings” subsection of the “Investor Information” section of the Company’s website at https://ir.shiftpixy.com/financial-information/sec-filings, or directly from the SEC’s website at https://www.sec.gov. Consistent with the SEC’s April 2013 guidance on using social media outlets like Facebook and Twitter to make corporate disclosures and announce key information in compliance with Regulation FD, the Company is alerting investors and other members of the general public that the Company will provide updates on operations and progress required to be disclosed under Regulation FD through its social media on Facebook, Twitter, LinkedIn and YouTube. Investors, potential investors, shareholders and individuals interested in the Company are encouraged to keep informed by following us on Facebook, Twitter, LinkedIn and YouTube.

INVESTOR CONTACT:

InvestorRelations@shiftpixy.com

800.475.3655

Source: ShiftPixy, Inc.

The ticker symbol for ShiftPixy is PIXY.

ShiftPixy is a national human capital provisioning enterprise that designs, manages, and sells access to a platform for employment in the Gig Economy.

The leading provider acquired by ShiftPixy has an annual revenue exceeding $50 million.

The leading provider acquired by ShiftPixy has a diverse portfolio of 100 blue chip customers.

The leading provider acquired by ShiftPixy has a loyal contingent workforce of over 10,000 temporary employees.
ShiftPixy Inc

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Human Resources Consulting Services
Professional, Scientific, and Technical Services
Link
Commercial Services, Personnel Services, Professional, Scientific, and Technical Services, Human Resources Consulting Services
US
Irvine

About PIXY

shiftpixy is enabling gig economy participation and engagement for your business designed to sync work opportunities from job providers with the open time slots of available shift workers. shiftpixy manages relationships with job providers to take open shift opportunities that are filling their schedules and offer them as work opportunities to qualified workers without the formal job interview and commitments. the shiftpixy app allows shift workers to enroll, profile and prequalify based on their work and training experience for open shift opportunities. “shifters” can earn provider specific qualifications to boost their score and access to more shift opportunities.