Business
Digerati Technologies Provides Update on its Planned Acquisition of Nexogy, Inc. and Signs LOI for Additional Acquisition
Digerati Technologies Provides Update on its Planned Acquisition of Nexogy, Inc. and Signs LOI for Additional Acquisition.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n SAN ANTONIO, March 02, 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 f...