News today or isn't it just regurgitated news
Digerati Technologies, Inc. Closes $20 Million Credit Facility with Post Road Group
November 30, 2020
Source: GlobeNewswire
Financing Enhances Growth Opportunities
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, announced today that its operating subsidiary, T3 Communications, Inc. (“T3”), has closed a $20 million senior secured credit facility (the “Facility”) with Connecticut-based Post Road Group. The Facility enables continued expansion of Digerati’s U.S. operations through organic growth efforts and targeted acquisitions.
The initial funding of $14 million from the $20 million multi-draw facility was used to close the Company’s recently announced acquisitions of Nexogy, Inc. (Nexogy.com) and ActivePBX (ActivePBX.com), and refinance existing debt. Future draws may be used to fund additional acquisitions within the Company’s robust M&A pipeline of UCaaS providers that meet key financial, technical, and operational criteria, and have excelled at customer service and satisfaction when serving regional businesses. The Facility will support a more streamlined approach to the Company’s acquisition process, accelerating its consolidation strategy in the highly-fragmented UCaaS marketplace.
Arthur L. Smith, CEO of Digerati, stated, “With investing expertise in the Technology, Media, and Telecommunications (“TMT”) industries and a culture that aligns with that of our Company, Post Road Group is an ideal financial partner for us during this key phase of our evolution. These milestone transactions and related financing give us a new currency with which to support both organic growth and future accretive acquisitions.”
Andrew Runk, Managing Director of Post Road Group, added, “We are excited to become Digerati’s capital partner. With these recent acquisitions, Digerati’s platform represents a springboard to growth and considerable scale in the SMB marketplace.”
Terms of the financing facility with Post Road Group and the acquisitions of Nexogy, Inc. and ActivePBX were disclosed in Digerati’s Form 8K filed on November 23, 2020.
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