Crexendo, Inc. (NASDAQ: CXDO) completed the acquisition of Estech Systems, LLC, a long‑tenured NetSapiens platform licensee, on March 2 2026. The deal adds Estech’s $26 million unaudited 2025 revenue and its cloud‑communication solutions to Crexendo’s portfolio, positioning the combined company to approach a $100 million annual revenue run rate.
The purchase price was $35 million, comprised of $27.3 million in cash and $7.7 million in Crexendo common stock, equal to 1,159,638 shares. The transaction was finalized concurrently with the signing of the Membership Interest Purchase Agreement on March 1 2026, confirming the terms and closing date.
Strategically, the acquisition expands Crexendo’s cloud‑communications footprint and accelerates growth in the unified communications as a service (UCaaS) market. Estech’s long history as a NetSapiens platform licensee and its cloud‑and‑on‑premises business‑phone solutions complement Crexendo’s existing product suite, allowing the company to broaden its offerings and deepen its presence among resellers and enterprise customers.
Financially, the deal is described as highly accretive. Crexendo expects immediate revenue and EBITDA accretion, with cost synergies and operational efficiencies projected to materialize over the next 12‑24 months through facilities consolidation, licensing optimization, and migration to Oracle Cloud Infrastructure. These synergies are intended to improve EBITDA margins and support the company’s $100 million run‑rate target.
Jeff Korn, Chairman and CEO of Crexendo, said, "This acquisition is exactly the type of transaction we have been talking about for years. 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." George Platt, President and CEO of Estech Systems, added, "We are incredibly excited to join the Crexendo team. Crexendo has been a trusted partner for many years, and this transaction allows us to deliver even greater value to our customers."
The UCaaS market is projected to grow at a 23.6% CAGR from 2021 to 2028, driven by the shift to remote and hybrid work. Crexendo’s recent ecosystem initiatives—including partnerships with AppDirect and Altigen, the launch of the Crexendo Marketplace, and the introduction of the CAIRO AI receptionist—underscore its strategy to combine organic growth with strategic acquisitions. The Estech deal strengthens this approach by adding a proven cloud‑communications provider and expanding the company’s reach in a rapidly expanding market.
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