SAN ANTONIO, Nov. 24, 2020 (GLOBE NEWSWIRE) -- Digerati Technologies, Inc. (OTCQB: DTGI), a provider of cloud services specializing in UCaaS solutions for the small to medium-sized business market, announced today that its operating subsidiary, T3 Communications, Inc., has closed a $20 million senior secured credit 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.
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.
About Post Road Group
Post Road Group (“Post Road” or “PRG”) is a private investment firm located in Stamford, Connecticut investing in corporate credit and real estate. Since its founding in 2015, Post Road Group has completed over $1 billion of investments. PRG’s Corporate Credit platform provides growth capital through senior secured loans and structured equity investments in the Technology, Media, Telecommunications (“TMT”), and business service industries, with a focus on telecom infrastructure and communications services in the lower-middle market, providing high-growth companies with flexible capital for strategic acquisitions, organic growth, and other special situations. The Firm’s Multifamily platform acquires and operates well-located multifamily properties nationwide, with a focus on attractive in-place cash flow and the ability to create value through repositioning. The Firm’s Real Estate Finance platform provides fast, flexible lending solutions to real estate owners, leveraging its extensive network and expertise to source investments that require flexible capital, need to close quickly, or are overlooked by banks and other traditional lenders. For more information about Post Road Group, please visit www.postroadgroup.com.
