Mergers and Acquisitions, Mergers and Acquisitions, Content, Telecom cloud, Unified communications

UCaaS and Telecom M&A: Crexendo Communications Acquires Allegiant Networks

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UCaaS solutions provider Crexendo will acquire Allegiant Networks, LLC  to expand Crexendo's business and footprint in the midwest U.S., particularly in Kansas and Missouri.

Crexendo will acquire 100% of the membership interests of Allegiant in exchange for cash, stock, and a buyer's note. At the closing of the transaction, Crexendo will make a payment of $2 million in cash, issue roughly 2.5 million 461,538 shares of Crexendo common stock which shall be Rule 144 restricted and deliver a note payable in favor of Bryan Dancer for the remaining $1.1 million of the purchase price.

Crexendo Acquires Allegiant Networks

This is technology M&A deal number 921 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

Crexendo, founded in 1995, is based in Tempe, Arizona. The company has 104 employees listed on LinkedIn. Crexendo’s areas of expertise include hosted communications, contact center, cloud communications, unified communications, cloud-based business phone systems, VoIP, team messaging & collaboration, HD video conferencing, professional services, business communications, Office Phone System, UCaaS, CCaaS, internet phone, remote work communication tools and SaaS.

Allegiant Networks, founded in 1974, is based in Overland Park, Kansas. The company has 50 employees listed on LinkedIn. Allegiant’s areas of expertise include managed services, VoIP telecommunications, cloud solutions, Avaya, Mitel, AT&T, WatchGuard, Ruckus, vCIO, data center, infrastructure cabling, security, Microsoft and VMware.

The deal will build on Crexendo's M&A growth strategy and allow Crexendo to expand its reach and offerings, especially in the midwest United States, the companies said. Following the acquisition, Mr. Dancer will join Crexendo as an executive vice president.

Steve Mihaylo, CEO, Crexendo
Steve Mihaylo, CEO, Crexendo

Steven G. Mihaylo, CEO, Crexendo, commented on the news:

"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. Allegiant's comprehensive suite of services, anchored by its world class data center, is a strong addition to the Crexendo portfolio. This transaction is expected to be highly accretive. The proposed transaction exemplifies Crexendo's strategy of entry into and consolidation into attractive growth markets, low risks, and ease of execution that does not distract from our organic strategy. We look forward to welcoming Allegiant's employees and customers to the Crexendo family."

Bryan Dancer, Allegiant CEO, commented:

"Allegiant and Crexendo have closely aligned cultures with shared business values that are focused on providing value and customer service. Our shared passion of providing the best services and support is the major reason I wanted to join Crexendo. I know our customers, our employees and our technologies are in good hands and our combination will only improve the service that Allegiant's customers receive. This acquisition will join two customer-centric and service-oriented companies with a focus on getting business accomplished efficiently. We are thrilled to join the Crexendo family and together become a major presence in the industry."

UCaaS M&A Activity

Unified communications-as-a-service (UCaaS) mergers, acquisitions and private equity deals have slowed down over the past year or so — perhaps because of valuation questions or because of competitive concerns involving Microsoft Teams, Zoom, Salesforce Slack and Cisco WebEx, among others.

Still, some deals are getting done. The M&A activity typically involves UCaaS companies that offer cloud- and software-based solutions for collaboration, voice, video, and contact center as a service. Here’s ChannelE2E’s UCaaS M&A deal list, which we update regularly.

Sharon Florentine

Sharon manages day-to-day content on ChannelE2E and serves as senior managing editor for CyberRisk Alliance’s Channel Brands. She also covers enterprise-class technology companies, strategic alliances and channel partner strategies. Sharon is a veteran tech journalist and editor with more than 25 years experience in the industry, and has previously held key editorial, content and leadership positions at Techstrong Group, CIO.com, Ziff Davis Enterprise and CRN.