ShiftPixy Inc. (NASDAQ: PIXY) today announced a definitive agreement to acquire an unnamed provider of human capital in Northern California.
The company to be acquired has a “strong” market presence in Northern California and an annual revenue run rate of $58 million, according to ShiftPixy. It has a portfolio of 94 commercial accounts, four regional office locations and more than 35,800 worksite employees.
“This first acquisition represents a pivotal moment for ShiftPixy as we expand our market presence and fortify our position in the gig economy,” said ShiftPixy CEO Scott Absher. “This first in a series of acquisitions is a strategic step to leverage the ShiftPixy technology platform and capture rapid market share in the evolving world of work.”
The acquisition is expected to close in the forthcoming quarter, subject to standard closing conditions. Upon completion, the entity will operate under the ShiftPixy umbrella.
Financial terms of the deal have not been disclosed.
Florida-based ShiftPixy on March 20 announced the receipt of terms for $100 million of commercial financing with Forstmann & Co. Inc., which it earmarked for its first round of strategic acquisitions slated for the first quarter of 2024.
“The financing facility is designed to scale upward throughout 2024, enabling the company to continue its acquisition work through 2025,” Absher said in a press release. “As followers of the company will recall, we had curated a substantial number of acquisitions in industrial human capital in 2021. We are now on a rapid pace to complete the work we began in 2021.”
ShiftPixy has also seen some internal executive changes. It terminated the employment of CFO Douglas Beck and COO Amanda Murphy effective March 6 and appointed Patrice Launay as its new CFO effective March 7.
Murphy then resigned from ShiftPixy’s board of directors effective March 19.
“To be clear, I am resigning because of my profound disagreement with the reasons that you provided me for my termination during our conversation on March 6, 2024, which I communicated to you on that day, as well as by letter, dated March 7, 2024,” Murphy wrote in a letter to Absher, which was filed with the US Securities and Exchange Commission.