SAN ANTONIO, Aug. 14, 2020 (GLOBE NEWSWIRE) -- Digerati Technologies, Inc. (OTCQB: DTGI), a provider of cloud services specializing in UCaaS solutions for the small to medium-sized business market, is pleased to provide an update to its previously announced definitive agreement to acquire Miami-based Nexogy, Inc., a leading provider of cloud communication and broadband solutions tailored for businesses.
The Company and Nexogy have extended the outside date for closing the transaction to September 15, 2020. As previously announced, the Company has negotiated and executed a long-form term sheet with principal terms on a $20 Million senior secured multi-draw credit facility that will be used to fund the Company’s acquisition of Nexogy, as well as the fourth acquisition under Letter of Intent, and for working capital. Since entering into the principal term agreement with its lender, the Company’s management team has been diligent in working with all parties to complete the audit, legal, and regulatory deliverables required to close the multiple transactions concurrently. In July, the Company filed its assignment of assets and change in control application with the Federal Communications Commission on its fourth acquisition.
As previously announced, 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. In addition to funding the Company’s next series of acquisitions, the delayed draw portion of the financing facility up to the $20 Million will be available to fund future acquisitions that management anticipates will streamline the acquisition process on select targets in its pipeline.
Arthur L. Smith, Chief Executive Officer of Digerati, commented, “I commend our team for staying on task and the continued progress as we work towards closing, not one, but two acquisitions simultaneously to closing a financing transaction that is a significant funding milestone for the Company. We look forward to providing further updates as we approach the final stretch on completing these transactions.”
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 (www.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.
