Digerati Technologies Provides Update on its Planned Acquisition of Nexogy, Inc. and Signs LOI for Additional Acquisition
– Secures FCC Approval of Nexogy Transaction –
San Antonio, TX – March 2, 2020 – 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 small to medium-sized business (SMB) market, is pleased to provide an update to its previously announced (from September 24, 2019) definitive agreement to acquire Nexogy, Inc. (“Nexogy”), a leading provider of cloud communication and broadband solutions tailored for businesses.
The Company secured FCC approval of its acquisition of Nexogy, Inc. in February 2020 after meeting the required public notice period pursuant to Section 214 of the Communications Act of 1934. In February, the Company also secured its fourth (4th) acquisition under a Letter of Intent (LOI) that it plans to close simultaneously with the Nexogy transaction over the next sixty (60) days. Additional information on the Company’s acquisition under LOI will be provided in a separate press release.
The Company plans to close the Nexogy transaction and fourth (4th) acquisition under a larger and lower cost financing facility that facilitates a more streamlined approach to funding future targets in the Company’s acquisition pipeline. In addition to establishing funding availability beyond what is required for current acquisitions, this type of financing facility is also expected to shorten the timeline from LOI to closing on future targets, thus allowing the Company to accelerate its acquisition strategy.
Arthur L. Smith, Chief Executive Officer of Digerati, commented, “While the closing of the Nexogy acquisition has been extended, it will now be closed with additional revenue and new customers from our acquisition under LOI, that is also located in South Florida, and aligns perfectly with our disciplined acquisition strategy. As previously reported, we have been working closely with the Nexogy team in identifying opportunities for growth and efficiencies, which led to a consensus regarding our fourth (4th) acquisition. On a trailing twelve-month (TTM) pro forma basis, the combined business (Nexogy and fourth (4th) acquisition) is now tracking to generate nearly $15 million in annual revenue with improved EBITDA and ROI from further consolidation savings derived from the additional acquisition. We look forward to providing more information on the next target under LOI in the near future.”
About Nexogy, Inc.
Nexogy is a leading provider of unified communications as a service (“UCaaS”) and managed services, offering a portfolio of cloud-based solutions to the small to medium-sized business market and serving over 1,500 business accounts and 14,000 users across various industries including Education, Health Care, Financial Services, and Real Estate. Based in Miami, Nexogy is a single-source provider that allows businesses and multi-location organizations to leverage flexible, cloud-based services without the need for high capital expenditures required for legacy systems. The product set include a diverse cloud solution consisting of voice PBX, broadband data, collaboration, and managed services. For more information about Nexogy, please visit www.nexogy.com.
About Digerati Technologies, Inc.
Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its subsidiary T3 Communications (T3com.com), the Company is meeting the global needs of businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions, including cloud PBX, cloud mobile, Internet broadband, SD-WAN, SIP trunking, and customized VoIP services, all delivered on its carrier-grade network and Only in the Cloud™. For more information about Digerati Technologies, please visit www.digerati-inc.com.
Forward Looking Statements
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful execution of growth strategies, product development and acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company’s periodic filings with the Securities and Exchange Commission.