Xcyte Digital Bolsters Global Presence with Streamlined Communications Acquisition

Xcyte Digital Corp. (TSXV: XCYT) has completed the purchase of former Streamlined Communications Ltd. assets, a strategic move that strengthens its global market position and technology footprint. The acquisition, valued at US$3.56 million, is expected to bolster both revenue and EBITDA for Xcyte once the platform is fully integrated.

Streamlined Communications, a US-based provider of audio conferencing, collaboration solutions, webcasting, and virtual events, brings a wealth of experience and innovative technology to Xcyte's portfolio. The acquisition includes Streamlined's intellectual property, customer contracts, and essential business infrastructure, enabling Xcyte to offer a more comprehensive suite of event technology solutions to its clients.

Xcyte anticipates that the acquisition will drive revenue and EBITDA growth, with Streamlined Communications reporting revenue of US$3.6 million and EBITDA of US$1.3 million for the trailing twelve months ended August 31, 2024. Although Xcyte acknowledges that the actual revenue and EBITDA realized may differ from Streamlined's reported results, the acquisition is expected to contribute positively to Xcyte's financial performance.

The acquisition was funded using a combination of cash, debt, and shares, with Xcyte issuing 50 Multiple Voting Shares (MV Shares) to the Seller. The MV Shares are convertible into 10,000 Subordinate Voting Shares (SV Shares) in the capital of the Parent, each of which is listed on the TSXV. All securities issued in connection with the Transaction will be subject to a hold period under applicable Canadian securities laws of four months and one day from the date of issuance, as well as applicable restrictions under United States securities laws.

The acquisition of Streamlined Communications' assets aligns with Xcyte's long-term strategic goals and risk management strategies, expanding its market and technology footprint, driving revenue and EBITDA growth, diversifying revenue streams, and strengthening its talent pool. By integrating Streamlined's technology and customer base, Xcyte can offer a broader range of services to its clients, reducing the impact of potential disruptions or downturns in any one segment of its business.

In conclusion, Xcyte Digital Corp.'s acquisition of Streamlined Communications' assets is a strategic move that enhances its market position and competitive landscape in the event technology sector, both domestically and internationally. The acquisition enables Xcyte to offer a more comprehensive suite of event technology solutions, driving revenue and EBITDA growth, and strengthening its customer experience.