Crexendo Completes $35 Million Estech Acquisition to Reach Revenue Milestone
Tempe, Monday, 2 March 2026.
Crexendo finalized its $35 million purchase of Estech Systems today, a strategic move positioning the cloud provider to approach $100 million in annual revenue while immediately enhancing cash flow.
Transaction Structure and Financial Impact
The transaction, officially executed on March 2, 2026, values Estech Systems, LLC (ESI) at a multiple of approximately 1.35 times its unaudited 2025 revenue [2]. The total consideration of $35 million is heavily weighted toward liquidity, comprised of $27.3 million in cash—representing 78% of the total purchase price—and $7.7 million in common stock [1][2]. ESI, headquartered in Plano, Texas, serves as a substantial addition to Crexendo’s portfolio, having generated approximately $26 million in revenue during the 2025 fiscal year [1].
Operational Synergies and Market Expansion
This acquisition immediately scales Crexendo’s market presence by integrating ESI’s 6,200 retail accounts and 75,000 seats into its ecosystem [1]. These additions complement Crexendo’s existing infrastructure, which currently supports over seven million end users globally through more than 240 cloud communication platform software subscribers [1]. Management projects that the consolidation will drive operational efficiencies across facilities, overhead, licensing, and network costs [2]. Furthermore, by leveraging ESI’s established engineering and sales teams to limit incremental hiring needs, Crexendo anticipates enhanced EBITDA margins and cash flow over the next 12 to 24 months [1][2].
Executive Sentiment and Outlook
Jeff Korn, Chairman and Chief Executive Officer of Crexendo, characterized the deal as the realization of a long-term strategic objective, stating that the acquisition is “exactly the type of transaction we have been talking about for years” [2]. George Platt, President and CEO of ESI, expressed confidence that the merger creates a stronger organization positioned for long-term service stability [1]. Management is scheduled to provide further details regarding the acquisition and its impact on the company’s trajectory toward $100 million in annual revenue during the year-end conference call taking place today, March 2, 2026 [1][2].