Digerati Provides Update of its Planned Acquisition of Nexogy
Digerati Technologies, Inc., a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, is pleased to provide an update to its previously announced definitive agreement to acquire Miami-based Nexogy, Inc. (“Nexogy”), a leading provider of cloud communication and broadband solutions tailored for businesses.
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The Company and Nexogy have extended the outside date for closing the transaction to August 14, 2020. The Company has continued to work closely with its lenders over the last few months in the midst of the COVID-19 Pandemic to close the Nexogy transaction and its fourth (4th) acquisition. The planned senior debt facility will fund the Company’s next series of acquisitions and facilitate a more streamlined approach to funding future targets in the Company’s acquisition pipeline. As previously announced, Digerati has also completed initial due diligence on its 4th acquisition and is proceeding with the transaction by seeking FCC approval required for closing the transaction. The combined business (T3 Communications, Nexogy and fourth (4th) acquisition) will serve over 2,600 business customers and approximately 28,000 users while generating over $14 Million in annual revenue with improved EBITDA resulting from cost synergies and consolidation savings.
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Arthur L. Smith, Chief Executive Officer of Digerati, commented, “While working closely with our lenders on the financing of the transaction, we have continued to work with management from both acquisition targets in refining our post-closing tactical plan and identifying opportunities for growth and operational efficiencies. We look forward to continued progress towards closing these transactions and securing the additional strong and predictable recurring revenue with high gross margins that we anticipate will be immediately accretive to earnings.”
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