SAN ANTONIO, TEXAS- February 8, 2022- 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 announce the completion of the acquisition of San Diego-based NextLevel Internet, Inc. (“NextLevel”), a leading provider of cloud communication and broadband solutions tailored for the SMB market.
The acquisition of NextLevel expands the Company’s growing nationwide footprint and adds a strong West Coast presence with nearly 1,000 SMB clients in California. On a consolidated basis and as a result of this acquisition, Digerati’s operating subsidiaries will now serve over 4,000 business customers and approximately 45,000 users. With the acquisition of NextLevel, based upon annualized results for the quarter ending October 31, 2021, the Company expects its operating subsidiaries in aggregate will generate approximately $31.5 million in annual revenue. In addition, the NextLevel acquisition is expected to have a positive impact on the consolidated EBITDA and operating income of the Company during FY2022.
“We’re excited about the NextLevel transaction, our largest acquisition to-date that delivers scale as we continue working towards our corporate goal of uplisting to Nasdaq or NYSE American,” said Arthur L. Smith, Chief Executive Officer of Digerati. “By uniting our companies’ shared vision of providing exceptional client experiences and an amazing corporate culture, we will be well positioned to continue executing on our growth strategy. We particularly like the success and expertise that NextLevel brings in the area of broadband services and the delivery of digital oxygen to the business market.”
Derek Gietzen, President of NextLevel, stated, “We could not have found a better partner than the Digerati Team. We are excited about the synergies that exist across the operating subsidiaries and all of the future opportunities this business combination provides for the NextLevel Team.”
Q Advisors, a TMT global investment banking boutique, acted as the financial advisor to NextLevel.
The entire Q Advisors team did a fantastic job helping NextLevel navigate a complex, but ultimately successful sale process. In Digerati, we found a buyer that aligned extremely well with our culture, client focus, technology stack, and growth goals. I couldn’t be more pleased with the outcome. The future of the combined companies looks very bright!Jerry Morris, Founder and CEO, NextLevel Internet, Inc.