Crexendo Completes Highly Accretive Acquisition of Estech Systems
Crexendo, Inc., an award-winning software technology company that
is a premier provider of cloud communication platform software and unified
communications as a service (UCaaS) offerings, including voice, video, contact
center, and managed IT services tailored to businesses of all sizes, y announced
that it has completed the acquisition of Estech Systems, LLC ("ESI"),
a highly respected provider of cloud communication solutions, and one of
Crexendo's longest-tenured NetSapiens platform licensees. The transaction
represents a transformative step in Crexendo's growth strategy and
significantly strengthens its position in the cloud communications market. The
acquisition is expected to be immediately accretive to revenue and EBITDA, and
positions Crexendo to approach a $100 million run rate in annual revenue with
enhanced operating leverage.
Strategic
and Financial Highlights
- Acquisition expected to increase Crexendo's
revenue, earnings and cash flow following closing.
- Purchase price of $35 million, consisting of
$27.3 million in cash and $7.7 million in common stock, representing a
multiple of approximately 1.35x unaudited 2025 revenue.
- ESI generated approximately $26 million in
revenue in 2025.
- Expected cost synergies from facilities
consolidation, licensing optimisation, cross-utilisation of employees,
operational expenses, network expenses, and Oracle Cloud Infrastructure
migration.
- Significant opportunity for revenue synergies
through cross-selling, expanded channel reach, and platform expansion.
Founded
in 1987 and headquartered in Plano, Texas, ESI brings a strong sales- and
engineering-driven organisation, deep customer relationships, and a proven
track record of delivering mission-critical communications solutions. ESI
currently supports over 6,200 retail accounts and over 75,000 seats. The
acquisition enhances Crexendo's market presence and expands its operational
scale.
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