It has been announced that Sangoma, a trusted leader in delivering Unified Communications, has successfully completed their transformative acquisition of Digium.
We are very excited to come together with Digium. Our customers will be the ultimate benefactors of this transaction, with the combined company establishing itself as the leader in enterprise, value-based communications. We remain committed to innovation in our product portfolio and I look forward to seeing the Asterisk and FreePBX communities at Astricon in just over a month.
Bill WignallThe outlook for Fiscal 2019 including Digium
Through shareholders requests and the significance of this purchase, Sangoma will provide an outlook of how Digium will affect the company by releasing its fiscal year 2019 results earlier than usual.
Revenue is projected to be increased by around $100 million in fiscal 2019 from the guidance of $55 million in revenue for 2018, with over 35% of that being recurring/services revenue.
The company anticipates generating adjusted EBITDA* of between $9 and $10 million this fiscal year and further expects adjusted EBITDA* margins to expand to over 13% by fiscal 2020 after overall synergies from this transaction are fully in place (anticipated to be about $4 million).
Transaction financing
With the acquisition, Sangoma has secured an additional debt of $21 million with TD bank meaning an overall total of credit facilities equalling to $28million. At closing, approximately $25 million will be outstanding and to be paid over 7 years.
The new debt is a mix of fixed rate and variable rate loans with about US$12 million at a fixed rate of 6.18% and the balance of about US$4 million at a variable rate of TD’s US dollar base rate plus 1.25%, which is currently 6.25%.
Read the full press release from Sangoma here
*Sangoma defines adjusted EBITDA as earnings before interest, taxes, depreciation, amortisation, and one-time acquisition and associated expenses.
