SAN ANTONIO, Texas, Sept. 24, 2019 (GLOBE NEWSWIRE) — Digerati Technologies, Inc. (OTCQB: DTGI) (“Digerati” or the “Company”), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market, announced today that it has entered into a definitive agreement to acquire Nexogy, Inc. (“Nexogy”), a leading provider of cloud communication and broadband solutions tailored for businesses.
On a trailing twelve months (TTM) pro forma basis, the combination of T3 and Nexogy generated $12.7 million in annual revenue while the consolidation of telecommunications infrastructure and integration of cloud PBX platforms and back-office systems is expected to produce cost savings and EBITDA improvements. The Company anticipates producing nearly 20% in operational EBITDA with synergies derived from the combined operation. Nexogy’s business model is supported by strong and predictable recurring revenue under long-term contracts and high gross margins of 75%+. Debt financing for the transaction has been committed by an established and traditional lending source and is expected to close in approximately ninety (90) days, subject to FCC regulatory approval.
Based in Miami, Florida, Nexogy is an established provider of UCaaS and managed services, offering a portfolio of cloud-based solutions to the high-growth small to medium-sized business (“SMB”) market. Over the years, the Nexogy team has developed a channel sales program that has proven to be effective and resulted in Nexogy’s recognition as one of the fastest growing technology companies in South Florida and nomination by the Miami Minority Chamber of Commerce as “High Tech Company of the Year 2016.” Nexogy has continuously exceeded meeting the needs of a growing business community, enabling its customers to communicate and compete in the global marketplace through its robust offering of communication solutions backed by cutting-edge technology, superior reliability and unrivaled support. […]