Crexendo Enters into Definitive Agreement to Acquire NetSapiens

9 Mar 2021

Crexendo, Inc., an award-winning premier provider of cloud communications, UCaaS (Unified Communications as a Service), call center, collaboration services, and other cloud business services that are designed to provide enterprise-class cloud services to any size business at affordable monthly rates, today announced that it had entered into a definitive agreement to acquire NetSapiens, Inc.

NetSapiens is an award-winning, patented cloud-native communications platform delivered via a high availability, multi-tenant solution that can be consumed however the service providers prefer, in their cloud or the NetSapiens cloud, on a subscription or a purchase model. They currently support over 1.7 million users on their platform through a community of partners

Pursuant to the agreement, Crexendo will acquire NetSapiens through a merger for approximately Fifty Million Dollars, consisting of $10 Million in cash and the remainder in stock consideration (which will include both shares of common stock and stock options), Crexendo will be issuing approximately 6,462,036 million total shares and options.

The transaction will be subject to approval by both Crexendo and NetSapiens shareholders. Crexendo will be issuing a proxy which will include a definitive proxy statement relating to a merger or acquisition. Crexendo will then be holding a meeting of shareholders expected to be in April or May 2021 with closing expected to occur shortly thereafter.

Steven G. Mihaylo, Chief Executive Officer commented “This is an important and transformational step for Crexendo. This is our first material accretive acquisition, and I could not be more pleased with the synergies between our companies. Crexendo with this step is enabled to becomes a dominant supplier with a rapidly growing global platform supporting over 1.7M users. This is our first major step in accelerating our growth and expanding our footprint. This accretive and synergistic acquisition is a win for both companies. Crexendo will be able to increase its offerings and size using the NetSapiens technology and will further benefit from a wealth of additional engineering, sales, and marketing talent. The NetSapiens team will benefit from the Crexendo resources and public company cache to continue their growth and enhance their offering portfolio. I could not be more excited about this acquisition, the benefits for both companies and our future. We believe that this transaction is going to substantially increase shareholder value.  I look forward to welcoming Anand and his team, and I know we will make a winning combination.”

Doug Gaylor, President and Chief Operating Officer, stated, “I am very excited about our merger with NetSapiens and what this means for the combined company. Our senior management teams have been working together for some time and we have developed a superb working relationship and friendships. We have all come to believe that the combination of these two excellent companies will be a benefit for all customers, employees and most particularly Crexendo shareholders.  The combined company will open up opportunities to provide excellence to our customers and to accelerate our growth.”

Anand Buch, co-founder and CEO of NetSapiens stated “Today’s announcement is an exciting milestone for NetSapiens and an important step in accelerating our growth. I share Doug’s sentiment that our teams will work closely together to provide substantial value to our partner community, our customers and Crexendo shareholders. This agreement with Crexendo is a testament to the value NetSapiens has created and the reputation our team has built. This partnership with Crexendo, will enable us to move faster, be more agile, accelerate our strategic vision and ultimately deliver deeper more powerful solutions that help our service provider community thrive.”

Colliers Securities LLC is serving as the exclusive financial advisor to Crexendo in the transaction.

About Crexendo

Crexendo, Inc. is an award-winning premier provider of UCaaS (Unified Communications as a Service), call center, collaboration services, and other cloud business services that are designed to provide enterprise-class cloud services to any size business at affordable monthly rates.

About NetSapiens

NetSapiens, Inc. provides  a comprehensive suite of unified communications (UC), video conferencing, Collaboration & contact center solutions to over 190+ service providers , servicing over 1.7M users around the globe. Our platform enables our service provider partners to custom-package with unprecedented levels of flexibility, profitability, and ease of use.



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