SAN ANTONIO, July 01, 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 definitive agreement to acquire Miami-based Nexogy, Inc. (“Nexogy”), 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 August 14, 2020. The Company has continued to work closely with its lenders over the last few months in the midst of the COVID-19 Pandemic to close the Nexogy transaction and its fourth (4th) acquisition. The planned senior debt facility will fund the Company’s next series of acquisitions and facilitate a more streamlined approach to funding future targets in the Company’s acquisition pipeline. As previously announced, Digerati has also completed initial due diligence on its 4th acquisition and is proceeding with the transaction by seeking FCC approval required for closing the transaction. 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.
Arthur L. Smith, Chief Executive Officer of Digerati, commented, “While working closely with our lenders on the financing of the transaction, we have continued to work with management from both acquisition targets in refining our post-closing tactical plan and identifying opportunities for growth and operational efficiencies. We look forward to continued progress towards closing these transactions and securing the additional strong and predictable recurring revenue with high gross margins that we anticipate will be immediately accretive to earnings.”
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.
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.
The Securities and Exchange Commission (“SEC”) has provided guidance to issuers regarding the use of social media to disclose material non-public information. In this regard, investors and others should note that we announce material financial information on the website of our investor relations company, www.TheWaypointRefinery.com, in addition to SEC filings, press releases, public conference calls and webcasts. We use these channels as well as social media to communicate with the public about our Company, our services and other issues. It is possible that the information we post on social media could be deemed to be material information. Therefore, in light of the SEC’s guidance, we encourage investors, the media, and others interested in our Company to review the information we post on the following U.S. social media channels:
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