Crexendo, IncCXDO agreed to acquire Allegiant Networks, LLC, a regional telecom and data services company offering Unified Communication as a Service (UCaaS), Telecom Services, Managed Services, and Network Services from their headquarters in Overland Park, Kansas.
Crexendo will acquire the membership interests of Allegiant in exchange for $2 million in cash and 2.46 million shares.
The company will also deliver a Note payable in favor of Allegiant CEO Bryan Dancer for the remaining $1.10 million. Dancer will join Crexendo as executive vice president.
The shares are worth $6.2 million as per Crexendo’s October 20 closing price of $2.53.
CXDO expects the transaction to be highly accretive. The proposed transaction will expand Crexendo’s business and footprint, particularly in Kansas and Missouri.
Crexendo CEO Steven G. Mihaylo commented, “We believe Allegiant will be a strong addition to Crexendo’s breadth of offerings, accelerating our growth strategy and expanding our national presence, particularly in the Midwest. With the combined scale, we will bring to market a larger balance sheet and a greater set of customer benefits.”
Crexendo held $4.9 million in cash and equivalents as of June 30. The company expects to close the transaction in 4Q22.
Price Action: CXDO shares traded higher by 1.58% at $2.57 on the last check Friday.
