Business
Digerati Technologies Updates Acquisition Status for Minority Stake in Costa Rica-based Itellum
Digerati Technologies Updates Acquisition Status for Minority Stake in Costa Rica-based Itellum.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n- Services Expansion into Latin America -\n             - Positions Company for Serving Emerging and Cross-Border Markets - SAN ANTONIO, May 07, 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, is pleased to provide an update for the acquisition announced on January 22, 2019,  of a minority ownership stake in Itellum Comunicaciones Costa Rica S.R.L (“Itellum”). Costa Rica-based Itellum is a fully-licensed telecom operator and Internet Service Provider (ISP) serving a high-growth business market in Central America that includes entities like Amazon, Intel, FedEx, and HP among the approximately 1,100 U.S. companies operating in the region.  Through the acquisition, Digerati will expand its long-standing relationship with Itellum as a regional Partner and Value-Added Reseller (“VAR”) for its cloud communication services. Digerati’s ownership will secure Itellum as an exclusive provider of Digerati’s services and positions the Company to better serve a growing region with business and cultural ties to the U.S. The transaction is currently in the final stage of due diligence and documentation and is anticipated to close during the Company’s fiscal fourth quarter for FY2019 (May-July 2019).  Arthur L. Smith, CEO of Digerati, stated, “Although we are primarily focused on the large U.S. marketplace of 27 million SMBs, currently valued at $26 Billion for cloud-based telephony services alone, our senior management team members have invested in, acquired, managed, and led telecommunications businesses throughout the emerging markets of Mexico, Central and South America for over 30 years. The executive team sees the potential value of cross-border market opportunities with the U.S., specifically in the Company’s primary markets of Texas and Florida, and especially with a well-known quantity in Itellum and its Founder and CEO, Tim Foss.” To date, Digerati has acquired two cloud communication providers and is currently serving over 10,000 business users in high-growth corridors of Texas and Florida, generating approximately $6.4 milli...