Why is the trading community buzzing about Elys Game Technology (NASDAQ:ELYS)? Without a doubt, ELYS stock is flying high because the company announced its acquisition of Engage IT Services, S.r.l. Consequently, Elys Game Technology is expanding and consolidating its team of tech experts.
Elys is a relatively small business-to-business (B2B) gaming tech company. It offers leisure gaming products and services revolving around sports betting, online casinos and other interactive games.
Virtual betting is a competitive field. Therefore, Elys has to continually develop new gaming offerings. That requires a high-conviction team of engineers and other experts, however.
To that end, Elys Game Technology finalized its acquisition of Engage IT Services, a software engineering and information technology (IT) development firm. Engage develops, among other things, sportsbook and gaming applications for cloud, web and mobile platforms.
What’s Happening With ELYS Stock?
ELYS stock ran as much as 90% higher this morning before falling back somewhat. Still, shares were up nearly 40% as of 10:30 a.m. Eastern — not too shabby.
Clearly, financial traders are bullish on Elys’ acquisition of Engage. It’s easy to see why investors are so excited about this development. Elys’ management, per the press release, feel that Engage “will greatly enhance our in-house engineering capabilities.”
Plus, there’s more to the story. Elys Game Technology has “obtained long-term commitments of 6 key IT, engineering, and risk and project management employees through the issuance of incentive shares vesting monthly over a period of 3 years.”
In other words, Elys is building and solidifying its top-tier tech talent. All in all, Elys Game Technology Executive Chairman Michele Ciavarella envisions Engage as bringing “the perfect blend of engineering excellence, overlapping corporate culture, and regional presence.”
Perhaps, then, Engage IT Services’ technology team will greatly enhance Elys’ long-term shareholder value. That’s apparently what ELYS stock investors are counting on as they push the share price significantly higher today.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.