SAN JOSE, Costa Rica, Jan. 22, 2019 /PRNewswire/ -- Digerati Technologies, Inc. (OTCQB: DTGI) a provider of cloud services specializing in Unified Communications as a Service (UCaaS) announced today that it has entered into an agreement to acquire a minority ownership stake in Itellum Comunicaciones Costa Rica S.R.L, a fully licensed telecommunication and Internet Service Provider.
Under the agreement, Digerati expands its long-standing relationship with Itellum, a regional Partner and VAR (Value-Added Reseller) for its cloud communication services. Digerati's purchase of a minority stake secures Itellum as the exclusive provider of Digerati's services; and positions the Company to better serve Central America. In addition, Digerati enhances its management team adding Timothy Foss, Founder and CEO of Itellum, who takes the role of Vice President of International Business Development for Digerati. The transaction is expected to close in the Company's third fiscal quarter of FY2019 (February - April 2019).
Mr. Foss relocated to Costa Rica to capitalize on the opportunities that occurred upon deregulation of the country's telecom market. He secured key telecom licenses and established Itellum as the leading provider of Internet, fiber optic, and cloud communication in the region. Prior to founding Itellum, Mr. Foss held positions in the U.S. with Bell-South, AT&T, and IDT Corporation where he was the Director of New Business Development - North America.
Arthur L. Smith, CEO of Digerati, stated, "We currently serve the 2nd and 4th largest state economies in the USA (Texas and Florida) with extensive trade and business ties to Latin America. This transaction is very strategic positioning us to become a leading service provider in this region with cross-border solutions typically not offered by our U.S. competitors. We also significantly enhance the international telecom expertise to our management team with the addition of Mr. Foss."
To date, Digerati has acquired two cloud communication providers and is currently serving over 10,000 business users in high-growth corridors of Texas and Florida, generating approximately $6.4 million in annual revenue. The transaction with Itellum delivers on two previously stated strategic initiatives including a) a continued emphasis on the Company's channel strategy of enabling Value Added Resellers ("VAR") to offer cloud and session-based communication services to the enterprise market and b) a disciplined approach to evaluating additional acquisitions as it continues to target local and/or regional UCaaS cloud telephony providers which have excelled in their market with that "local" touch when serving their business customers.
Itellum Comunicaciones Costa Rica is headquartered in San Jose, Costa Rica. It is a privately owned and operated internet and telecommunications company with focus on US and Central American markets. Itellum provides 1:1 international Fiber Optic networks, Cloud & Unified Voice Services and other data centric solutions.
Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS solutions. Through its subsidiaries, Synergy Telecom and T3 Communications, the Company is meeting the global needs of businesses seeking reliable, cost-effective communication and network solutions, including cloud PBX, cloud mobile, Internet broadband, SD-WAN, SIP trunking, and customized VoIP services, all delivered on its carrier-grade network and Only in the Cloud™.