- Crexendo, Inc CXDO 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.
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