Press Release, Digerati Technologies Provides Update of its Planned Acquisition of Nexogy, Inc. and LOI for Fourth Acquisition.
SAN ANTONIO, April 30, 2020 (GLOBE NEWSWIRE) -- 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 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 June 30, 2020. The Company’s fourth (4th) acquisition under LOI, which is planned to close simultaneously with the Nexogy transaction, has also been extended.
As previously announced, the Company plans to close the Nexogy transaction and the fourth (4th) acquisition under a larger and lower cost financing that facilitates a more streamlined approach to funding future targets in the Company’s acquisition pipeline. The Company has continued to work closely with its lenders during the COVID-19 Pandemic to establish funding availability beyond what is required for the current transactions, thus allowing for acceleration of its acquisition strategy in the future.
Arthur L. Smith, Chief Executive Officer of Digerati, commented, " We are fortunate to have lenders that are bullish on our industry and eager to be our financing partners even during the COVID-19 Pandemic. Our UCaaS solution which is in demand today, allows business users to communicate from any location at any time and on any device supporting remote teleworking environments needed to reduce the spread of the Coronavirus. However, like all businesses, we are still faced with the broader macro issues that are affecting project and/or transactional timelines during this time.”
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.
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.
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