American Virtual Cloud Technologies, Inc. (“AVCtechnologies” or the
“Company”) (Nasdaq: AVCT), a trusted partner providing
best-in-class cloud-based solutions to global enterprise customers,
today announced it has executed a definitive agreement to sell its
Computex Technology Group (Computex) business to Calian Group Ltd.
(Calian) (TSX: CGY), which will complete AVCtechnologies’
transition to a pure-play cloud communications and collaboration
company, centered on its premium Kandy platform.
The proceeds from the sale along with use of cash on hand are
expected to leave AVCtechnologies debt-free and allow long-term
value creation for its shareholders. AVCtechnologies’ recently
completed share registration related to warrants issued in prior
transactions will, if all the issued warrants are exercised, based
on the warrant exercise prices which currently range from $1.50 to
$2.00 per share, result in the receipt of over $40 million in
incremental cash proceeds, fully funding its strategic growth
initiatives including the recently announced partnerships with
Braidio and Etisalat.
AVCtechnologies also recently announced that Michael Tessler had
joined its Board as Chairman. Tessler is the founder and former CEO
of Broadsoft, one of the world’s largest Unified Communications as
a service (UCaaS) platform providers, which was sold to Cisco in
2018 for $1.9 billion. Cloud communications represents a
fast-growing total addressable market that is expected to grow at
least in the low-teens CAGR over the next four years to $100
billion1.
AVCtechnologies’ Kandy platform, which it acquired in December
2020, is one of the largest pure-play providers of Unified
Communications as a Service (UCaaS), Contact Center as a Service
(CCaaS), Communications Platform as a Service (CPaaS), and Direct
Routing as a Service (DRaaS) for enterprise customers and has
consistently generated above-market revenue growth rates.
AVCtechnologies previously announced projected revenues of its
Kandy Business Unit to grow from $14.3 million in 2020 to
approximately $18.8 million in 2021 and to more than $37 million in
2022. The significant projected growth is driven by 505%
year-over-year subscriber growth (90% CAGR) from January 2019 to
November 2021.
Darrell J. Mays, CEO of AVCtechnologies, said “Our white-label
relationships with key telecommunication companies and technology
vendors, global carrier-grade connectivity, and proven SD-WAN
integration position AVCtechnologies as a premier cloud
communications provider poised to gain market share.”
AVCtechnologies acquired Computex, an award-winning IT solutions
provider specializing in data centers, enterprise networking,
cloud, cybersecurity, and managed services, in April 2020.
“We have been pleased with the growth of Computex’s VAR and
Managed Services businesses since acquiring the business in 2020;
however, with our newly dedicated focus on our core Kandy cloud
communications and collaboration technologies, we decided to divest
Computex and believe the business will continue to thrive under
Calian’s ownership,” said Mays.
The closing of the transaction is subject to shareholder
approval and other customary closing conditions. Shareholders
holding more than 50% of AVCtechnologies’ outstanding common stock
have signed voting agreements to support the transaction.
Truist Securities, Inc. is serving as sole financial advisor and
Greenberg Traurig LLP is serving as legal counsel to
AVCtechnologies.
1Sources: IDC UC and Collaboration 2019-2025 May 2021, Juniper
CPaaS: Future Market Outlook & Emerging Opportunities 2020-2025
July 2021, Company Estimates, September 2021
About American Virtual Cloud Technologies,
Inc.American Virtual Cloud Technologies, Inc.
(“AVCtechnologies”; Nasdaq: AVCT) is a premier global cloud
communications offering proprietary UCaaS, CPaaS, and CCaaS
capabilities. Our mission is to provide global technology solutions
with a superior customer experience. For more information, visit
https://www.avctechnologies.com.
About KandyKandy, an AVCtechnologies company,
is a cloud-based, real-time communications platform offering
proprietary UCaaS, CPaaS, CCaaS, Microsoft Teams Direct Routing as
a Service, and SIP Trunking as a Service capabilities. Kandy
enables service providers, enterprises, software vendors, systems
integrators, partners, and developers to enrich their applications
and services with real-time contextual communications, providing a
more engaging user experience. With Kandy, companies of all sizes
and types can quickly embed real-time communications capabilities
into their existing applications and business processes. For more
information visit kandy.io
About Computex Technology SolutionsComputex
Technology Solutions is an award-winning solutions provider that
enables its clients to grow, differentiate and evolve their
business via innovative and proven technology. An American Virtual
Cloud Technologies IT service management company (AVCtechnologies),
Computex combines its over 30 years of hands-on experience with its
unparalleled processes to deliver enterprise networking, cloud and
cybersecurity data center solutions, as well as managed services,
that meet each of its customers’ unique IT, business and budgetary
goals. To learn more, please visit: https://computex.net/ or call
888-335-2789.
Cautionary Note Regarding Forward-Looking
StatementsThis press release includes certain statements
that are not historical facts but are forward-looking statements
for purposes of the safe harbor provisions under the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding the closing
of the sale of the Company’s Computex business and the anticipated
proceeds thereof, the Company’s planned repayment of its
outstanding indebtedness, the Company’s projections, estimates and
forecasts of revenue and other financial and performance
metrics, the exercise of outstanding warrants issued by the
Company and the anticipated proceeds thereof, and planned future
growth. The Company’s actual results or outcomes and the timing of
certain events may differ significantly from those discussed in any
forward-looking statements, including as a result of the
uncertainty associated with being able to complete the planned sale
of the Company’s Computex business, and the impact of the proposed
Computex sale on the Company’s business, including its financial
and operating results and its employees and clients. These
statements are based on various assumptions and on the current
expectations of the Company’s management and are not predictions of
actual performance. These forward-looking statements are provided
for illustrative purposes only and are not intended to serve as,
and must not be relied on by any investor as, a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability.
Actual events and circumstances are difficult or impossible to
predict and will differ from assumptions. Many actual events and
circumstances are beyond the control of the Company. These
forward-looking statements are subject to a number of risks and
uncertainties, including changes in the Company’s clients’
preferences, prospects and the competitive conditions prevailing in
the industries in which the Company operates; the Company’s
substantial indebtedness; risks associated with the potential
effects of COVID-19 on the Company’s business; risks that the
planned sale of the Company’s Computex business will not be
consummated as expected; ability to retain key personnel; the
potential impact of consummation of the planned disposition of the
Company’s Computex business on relationships with third parties,
including customers, employees and competitors; conditions in the
capital markets; and those factors discussed in the Company’s
amended annual report on Form 10-K filed with the SEC on
May 14, 2021 under the heading “Risk Factors,” and other documents
of the Company filed, or to be filed, with the SEC. If the risks
materialize or assumptions prove incorrect, actual results could
differ materially from the results implied by these forward-looking
statements. There may be additional risks that the Company
presently does not know or that the Company currently believes are
immaterial that could also cause actual results to differ from
those contained in the forward-looking statements. In addition,
forward-looking statements reflect the Company’s expectations,
plans or forecasts of future events and views as of the date of
this report. The Company anticipates that subsequent events and
developments will cause its assessments to change. However, while
the Company may elect to update these forward-looking statements at
some point in the future, the Company specifically disclaims any
obligation to do so. These forward-looking statements should not be
relied upon as representing the Company’s assessments as of any
date subsequent to the date of this document. Accordingly, undue
reliance should not be placed upon the forward-looking
statements.
Contact:Info@avctechnologies.com
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