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TARRYTOWN, N.Y., March 05, 2025 (GLOBE NEWSWIRE) -- via IBN -- Nightfood Holdings, Inc. (OTCQB: NGTF), a pioneering force in AI-powered automation solutions for the hospitality industry, is thrilled to announce the signing of a Letter of Intent (LOI) to acquire Skytech Automated Solutions Inc., a Delaware-based innovator in robotic automation and smart service technologies.
This acquisition marks a pivotal milestone in Nightfood’s aggressive expansion strategy, reinforcing its leadership in the booming Robot-as-a-Service (RaaS) sector. By integrating Skytech’s cutting-edge technology into its portfolio, Nightfood is positioning itself to scale automation solutions across the hospitality landscape, fueling operational efficiencies, cost savings, and enhanced service capabilities.
Strategic Synergy and Deal Terms
Under the terms of the LOI, Nightfood Holdings will acquire 100% of Skytech’s equity interests in a deal valued at approximately $6.2 million, structured as follows:
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$1.2 million in Series C Preferred Stock, issued at closing.
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Up to $5.0 million in performance-based earnout payments, contingent upon Skytech achieving progressive revenue milestones earnout payments tied to revenue targets of $5M, $10M, $25M and $50M. issued in Series C Preferred Shares convertible into Nightfood common stock based on a 30-day volume-weighted average price (VWAP) mechanism.
This performance-driven deal structure ensures that shareholder value is maximized, rewarding growth and reinforcing Nightfood’s disciplined approach to M&A.
Scaling AI-Powered Automation in Hospitality
Skytech brings a proven track record in hospitality automation, with its management team’s unique background and experience of managing over 130 hotels, as well as developing more than 50 properties. The team possesses deep expertise in hotel operations, smart automation, and robotic deployment strategies, enabling more efficient resource allocation and cost reduction for hospitality providers.
“With this acquisition, we are executing our vision of embedding AI-powered robotics into high-demand hospitality applications,” said Jamie Steigerwald, Chairman of Nightfood Holdings. “Skytech’s innovative technology aligns perfectly with our growth strategy, allowing us to scale automation services across hotels, food service, and senior care communities. Our mission remains clear: build long-term shareholder value while solidifying our leadership in AI-driven automation.”
Fueling Nightfood’s Multi-Million Dollar Expansion Plan
This acquisition is the latest step in Nightfood’s ambitious $40 million acquisition roadmap, designed to accelerate revenue growth and expand market leadership. The Company has already completed the acquisition of Future Hospitality Ventures and expects to finalize the pending SWC Group Inc acquisition by Q2 2025.