Miivo AI (TSX-V:MIVO) is adding a vertical strategy to its broad AI platform business. The company has agreed to acquire First Five, a Swiss sports advisory firm whose client list includes the International Olympic Committee, the International Basketball Federation and Premier Padel.
Under a share purchase agreement with an arm's-length party, Miivo will pay CHF 288,000 (about C$490,000) for all issued and outstanding shares of First Five. Half is payable in cash at closing. The remainder will be satisfied through a vendor loan note maturing six months after closing.
For Miivo, the deal opens a second track alongside the horizontal approach the company has used to date. Its AI platform was built to serve businesses across industries, sold through a subscription model that offers an affordable entry point and monthly recurring revenue. Customers are now moving into higher-priced plans, which CEO Alexander Damouni described as evidence the company's flywheel is starting to gain momentum.
"The first track that we built was a horizontal approach, where we went broad," Damouni said.
"With the acquisition, this opens up a second growth track where we can go vertical. We can be laser-focused and go deep into one industry, which in this case is sports."
A sector ready for better data
Damouni sees sports as highly underserved when it comes to AI, particularly in marketing and monetization. Sports organizations hold large volumes of data and operate complex business models, he said, and pulling that information together from different sources is where Miivo can add value.
First Five is headquartered in Féchy, Vaud, and works with sports organizations, leagues, federations, clubs and venues looking to increase the commercial value of their audiences through data, technology and digital transformation. Its expertise spans fan engagement, audience intelligence, digital capability development and commercial transformation.
Miivo brings AI, automation, business intelligence and technology implementation. Damouni said that combination could allow the enlarged business to offer sports organizations services ranging from strategic advisory through to implementation.
That matters because First Five has traditionally outsourced the implementation side of its technology advisory work. With Miivo, that work can now be done in-house.
A distribution-led expansion model
The acquisition fits a pattern in how Miivo is growing. Rather than solely relying on paid advertising to acquire users, as many SaaS companies do, Damouni said he prefers to work through established companies in each region that share similar business models, recurring revenue, and a proven track record to build a distribution network for Miivo's AI products.
Miivo already has a physical presence in the Middle East through Tandem, a sales team in North America, and now an established base in Europe through First Five.
First Five brings strategic benefits beyond geography. Its retainer-based contracts mirror Miivo's recurring revenue model to deploy Miivo's subscription-based AI products, and it gives Miivo a route into the mid-market. "When we were first going into the market with Miivo and Tandem, we had this entry-level price point, and now we're seeing customers upsell," Damouni said.
The European footprint carries added weight because Miivo is listed on the Frankfurt Stock Exchange. For European investors, Damouni said, a physical presence in the market provides some reassurance.
Products as the entry point
Integration is the immediate priority, along with turning some of First Five's services into products. Damouni described the playbook as using affordable AI products as an entry point for bespoke services. In sports, that could mean a product around fan engagement or ticketing, customized for individual clients and paired with implementation work.
Damouni expects sports to be an industry where Miivo goes deep, while the wider SME market remains the focus of its broad strategy. Both tracks are expected to contribute to monthly recurring revenue.
"I'm in my growth phase now," he said. "This is really about proving that the model works."
