Digerati Technologies Pivots from Cloud Offering to Colocation Services

Digerati Technologies, the holding company of cloud service and colocation providers Waiv Cloud and Verve Cloud, has pivoted away from cloud computing. Digerati has completed the refinancing and debt-for-equity exchange for its former subsidiary Verve Cloud, enabling it to focus on colocation services.

The transaction saw more than $50 million in lender debt converted into Verve Cloud equity, while Digerati exchanged the lender debt for the various assets in Verve Cloud, Inc., that included approximately $29m in annual revenue, equipment, customer and vendor contracts, and other operating agreements.

Digerati’s board member, Craig K. Clement, said: “Today marks a new beginning for Digerati as we have moved on from the Verve Cloud business model. In return, we have significantly reduced our debt and repositioned ourselves as Waiv Cloud, a client-focused nationwide provider of colocation services. The colocation business represents predictable recurring monthly revenue that we believe we can expand and build upon. These actions are part of ongoing efforts to streamline operations, reduce debt, and reposition Digerati for the long term.”