Newspaper article THE JOURNAL RECORD

Oklahoma-Based Xeta Technologies to Purchase Dallas-Based Pyramid Communications

Newspaper article THE JOURNAL RECORD

Oklahoma-Based Xeta Technologies to Purchase Dallas-Based Pyramid Communications

Article excerpt

Xeta Technologies Inc. has signed a nonbinding letter of intent to purchase Pyramid Communications Services Inc. No financial details were disclosed, other than the transaction is targeted to close by July 31.

Pyramid, a privately held, Dallas-based company, provides communications equipment and service.

Founded in 1998, Pyramid ended 2009 with revenues in excess of $10 million.

The acquisition is consistent with Xeta's strategy to consolidate regional and local business partners with significant integration, maintenance and repair service franchises, said Greg Forrest, Xeta CEO.

During an investment luncheon earlier this month, Forrest discussed Xeta's goal to shift its revenue mix, of which 53 percent currently comes from services, to where 67 percent of revenues are derived from its service sector.

"The acquisition of Pyramid, with its presence in eight states and 22 markets, will strengthen our geographic coverage in our existing operations in the Central and Mountain time zones," Forrest said Monday.

Xeta's targeted organic growth rate for the next three to five years is 15 percent, Forrest said.

"We can grow faster through acquisitions," he said.

Last summer, Avaya and Nortel announced a merger. The combination of the two largest vendors in the enterprise communications market was a major event in the industry, Forrest said.

"Over the last year, Xeta has generated significant cash flow, paid off its long-term debt, built a cash balance of $5.4 million (end of January quarter), established an $8.5 million line of credit, and improved our profitability," he said. "With these actions we are well-positioned to take share and be an active consolidator among other Avaya channel partners."

Pyramid's acquisition will accelerate the transition to the Avaya Connect program and allow Pyramid to dedicate more resources to its growing business, said Wade Griffin, CEO and co-founder of Pyramid. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.