DynTek and Wells Fargo Announce New Lending Facility and Commercial Banking Relationship
April 26 2017 - 12:00PM
DynTek, Inc. (OTC:DYNE), a leading provider of
professional technology services, and Wells Fargo Capital Finance,
part of Wells Fargo & Company (NYSE:WFC), today announced the
companies have entered into a new three-year $50 million revolving
line of credit and commercial banking relationship.
The new line of credit structure is intended to
provide DynTek with reduced interest expense and increased
flexibility to support the Company's strategic growth initiatives
and investments. The Company plans to use the funds to support
general working capital and future revenue growth across its
national base. DynTek reported revenues of $176.9 million for
the fiscal year ended June 30, 2016, an increase of 18% from $149.9
million in fiscal year
2015.
“Working with the Wells Fargo Capital Finance
team has been a tremendous experience,” said Ron Ben-Yishay,
DynTek’s chief executive officer. “The team’s knowledge of the
technology industry allowed us to close the transaction quickly and
efficiently. As our organization grows and processes larger, more
complex transactions and investments, we require a strategic
banking team that has the breadth and depth to support our
initiatives. Wells Fargo is integral in our strategic growth
and we appreciate their confidence in our business plan, team and
market position.”
Recently named one of CRN®’s 2017 Tech Elite
Solution Providers, DynTek provides professional IT solutions
across a broad range of areas such as Cybersecurity, Data Center,
Cloud Computing and more. The company holds top medallion-level
partnerships across a broad range of industry-leading technology
manufacturers, including Cisco Gold, Citrix Platinum, Microsoft
Gold, McAfee Platinum, NetApp Gold and many more.
“DynTek is a strong company with a proven
ability to provide tailored solutions for their clients,” said
Anthony Lingafelt, Director, Supply Chain Finance, Wells Fargo
Capital Finance. “We are very pleased to have been able to complete
such significant financing that will enable DynTek the financial
flexibility to continue their growth objectives.”
About Wells Fargo Capital Finance Wells Fargo
Capital Finance is the trade name for certain asset-based lending
services, senior secured lending services, accounts receivable and
purchase order finance services, and channel finance services of
Wells Fargo & Company and its subsidiaries, and provides
traditional asset-based lending, specialized senior and junior
secured financing, accounts receivable financing, purchase order
financing and channel finance to companies across the United States
and internationally. Dedicated teams within Wells Fargo Capital
Finance provide financing solutions for companies in specific
industries such as retail, software and hi-tech, healthcare,
commercial finance, staffing, government contracting and others.
For more information, visit wellsfargocapitalfinance.com.
About Wells Fargo Wells Fargo & Company
(NYSE:WFC) is a diversified, community-based financial services
company with $2.0 trillion in assets. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial
finance through more than 8,500 locations, 13,000 ATMs, the
internet (wellsfargo.com) and mobile banking, and has offices in 42
countries and territories to support customers who conduct business
in the global economy. With approximately 273,000 team members,
Wells Fargo serves one in three households in the United States.
Wells Fargo & Company was ranked No. 27 on Fortune’s 2016
rankings of America’s largest corporations. Wells Fargo’s vision is
to satisfy our customers’ financial needs and help them succeed
financially. News, insights and perspectives from Wells Fargo are
also available at Wells Fargo Stories.
About DynTekDynTek is a leading provider of
professional technology services to mid-market companies, such as
state and local governments, educational institutions and
commercial entities in the largest IT markets nationwide. From
virtualization and cloud computing to unified communications and
collaboration, DynTek provides professional technology solutions
across the three core areas of our customers’ technical
environment: Infrastructure/Data Center, Microsoft Platform, End
Point Computing. DynTek's multidisciplinary approach allows our
clients to turn to a single source for their most critical
technology requirements. For more information, visit
http://www.dyntek.com.
Follow Us Online: Twitter:
@DynTek DynTek on Facebook DynTek on LinkedIn
Forward Looking Statements
This press release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Investors are
cautioned that forward-looking statements made in this press
release, such as statements relating to the effect that the
adoption of the revolving line of credit will have on our business
and our intended use of funds borrowed under the revolving line of
credit, involve known and unknown risks and uncertainties that
could cause actual results to materially differ from the
forward-looking statements. Such risks and uncertainties
include, among others, our success in reaching target markets for
services and products in a highly competitive market; our ability
to maintain existing customers and attract future customers; our
ability to finance and sustain operations, including our ability to
comply with the terms of the revolving line of credit and the
Company’s other existing and future indebtedness; our ability to
achieve profitability and positive cash flow from operations; our
ability to maintain business relationships with IT product vendors;
the size and timing of additional significant orders for our
products and services and our ability to fulfill such orders; the
continuing desire of state and local governments to outsource to
private contractors and the availability of budgets to place orders
for our products and services; our ability to retain skilled
professional staff and certain key executives; the performance of
our government and commercial technology services; and the
continuation of general economic and business conditions that are
conducive to outsourcing of IT services. We have no obligation to
publicly revise any forward-looking statements to reflect
anticipated or unanticipated events or circumstances occurring
after the date of such statements.
For more information, contact:
Linda Ford
DynTek, Inc.
949-271-6705
linda.ford@dyntek.com
Wells Fargo & Company
Sarah Hatch
505-818-7480
sarah.hatch@wellsfargo.com
@SarahHatchWF
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