Crexendo Inc., a provider of cloud communication platform software, UCaaS offerings and managed IT services, has completed its acquisition of Estech Systems LLC (ESI), a provider of cloud communication solutions and one of Crexendo’s longest-tenured NetSapiens platform licensees. The $35 million transaction aligns with Crexendo’s growth strategy and is expected to strengthen its position in the cloud communications market, officials said.
The acquisition is expected to be immediately accretive to revenue and EBITDA, and positions Crexendo to approach $100 million run rate in annual revenue with enhanced operating leverage, the company said.
There are expected cost synergies from facilities consolidation, licensing optimization, cross-utilization of employees, operational expenses, network expenses, and Oracle Cloud Infrastructure migration, officials said. In addition, the company anticipates revenue synergies through cross-selling, expanded channel reach and platform expansion.
Founded in 1987 and headquartered in Plano, Texas, ESI generated approximately $26 million in revenue last year. It supports more than 6,200 retail accounts and more than 75,000 seats.
“This acquisition is exactly the type of transaction we have been talking about for years,” said Jeff Korn, chairman and CEO of Crexendo. “ESI is a best-in-class organization with exceptional people, strong engineering capabilities, and a long history of success serving customers on our NetSapiens platform. By incorporating ESI into Crexendo, we are combining our strong double-digit organic growth with an accretive acquisition from our deep ‘fishing pond’ of licensees. The result is a stronger, more scalable company with expanded capabilities for our customers, partners and shareholders. I could not be more ecstatic about how this acquisition will positively affect our future growth and success and am excited to welcome the ESI team to Crexendo.”
“We are incredibly excited to join the Crexendo team,” said George Platt, president and CEO of ESI. “Crexendo has been a trusted partner for many years, and this transaction allows us to deliver even greater value to our customers by combining our sales, engineering and customer support expertise with Crexendo’s scale, platform innovation and resources. Together, we are building a stronger organization that is well-positioned to serve our customers for decades to come. I would also like to thank our Founder, Eric Suder, for the immeasurable impact he has made on ESI’s employees, their families, our customers and the community.”
