Crexendo, Inc. (NASDAQ: CXDO), a cloud communications provider specializing in unified communications and managed IT services, announced it has completed the acquisition of Estech Systems, LLC (ESI) — a long-time licensee of Crexendo’s NetSapiens platform — in a transaction the company says will materially strengthen its market position and accelerate revenue growth toward a targeted $100 million annual run rate.(Crexendo®)
Acquisition Details and Strategic Rationale
Crexendo agreed to purchase ESI for a total of $35 million, consisting of $27.3 million in cash and $7.7 million in common stock — a deal valued at roughly 1.35× unaudited 2025 revenue. ESI contributed about $26 million of revenue in 2025 and brings deep sales, engineering and customer relationships to Crexendo’s platform ecosystem.
Founded in 1987 and headquartered in Plano, Texas, ESI is a respected cloud communications solutions provider that currently supports more than 6,200 retail accounts and over 75,000 active seats on the NetSapiens platform. The deal significantly expands Crexendo’s footprint, adding scale and recurring revenue to its business.
According to the companies, the acquisition is expected to be immediately accretive to both revenue and EBITDA, enhancing cash flow and operating leverage. Crexendo also anticipates meaningful cost synergies from consolidating facilities, optimizing licensing, streamlining operations, and migrating workloads to Oracle Cloud Infrastructure — all of which could improve margins over the next 12–24 months.
Growth and Synergy Opportunities
In addition to cost savings, Crexendo sees revenue synergy potential from cross-selling opportunities, expanded channel reach, and deeper integration of services across its unified communications portfolio. Combining ESI’s established customer base with Crexendo’s broader sales and technology resources could create new sales motion momentum and strengthen customer retention across the combined platform.
Chairman and CEO Jeff Korn described the acquisition as “exactly the type of transaction we have been talking about for years,” emphasizing that ESI’s strong engineering capabilities and customer service fit well with Crexendo’s long-term strategic vision. ESI’s leadership echoed this sentiment, highlighting that joining Crexendo will allow them to leverage enhanced scale and resources to better serve customers and grow in the evolving cloud communications landscape.
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