Digerati Technologies, a UCaaS provider from San Antonio, Texas, has acquired Miami-based Nexogy, Inc, which provides cloud communication and broadband solutions. The deal will double Digerati’s annual revenue to $12.7 million. Financial terms of the buyout were not disclosed.
Nexogy, founded in 1999, provides Unified Communication as a Service (UCaaS) toSMBs. The firm has developed a channel sales program that apparently made them an attractive acquisition target for Digerati.
Arthur L. Smith, CEO of Digerati, commented:
"During the due diligence phase, we were most impressed with Nexogy’s team and organic growth driven by its established and well recognized channel sales program, streamlined back-office operation, and culture of customer care. We are excited about the tremendous value these attributes will bring to our combined offerings in the lucrative corridors we serve in Texas and Florida, and I expect the deal to be immediately accretive to earnings and have a positive effect on net equity.”
Smith said the deal meets the geographic, financial, and technological criteria for the company’s “disciplined” M&A strategy.
Nexogy will be combined with Digerati’s operating subsidiary, T3 Communications Inc. The combined operation will serve over 24,000 businesses across a range of industries including banking, healthcare, financial services, legal, education, and more, the company said.
Felipe Lahrssen, chief operating officer of Nexogy, commented:
“We are excited to be part of the cultural and operational foundation of Digerati during this period of growth and consolidation in our industry. Acquiring other profitable, regional cloud communication providers is a winning strategy we embrace with enthusiasm. It also provides a major growth opportunity through new sales channels with an extended service offering for our clients. As organizations continue their transition to a true hosted communication and collaboration solution, we will be best positioned to support them on that journey, with a personal touch."