NEWPORT BEACH, Calif. and SANTA MONICA, Calif., April 26, 2017 (GLOBE NEWSWIRE) -- DynTek, Inc. (OTC:DYNE), a leading provider of professional technology services, and Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE:WFC), today announced the companies have entered into a new three-year $50 million revolving line of credit and commercial banking relationship.
The new line of credit structure is intended to provide DynTek with reduced interest expense and increased flexibility to support the Company's strategic growth initiatives and investments. The Company plans to use the funds to support general working capital and future revenue growth across its national base. DynTek reported revenues of $176.9 million for the fiscal year ended June 30, 2016, an increase of 18% from $149.9 million in fiscal year 2015.
“Working with the Wells Fargo Capital Finance team has been a tremendous experience,” said Ron Ben-Yishay, DynTek’s chief executive officer. “The team’s knowledge of the technology industry allowed us to close the transaction quickly and efficiently. As our organization grows and processes larger, more complex transactions and investments, we require a strategic banking team that has the breadth and depth to support our initiatives. Wells Fargo is integral in our strategic growth and we appreciate their confidence in our business plan, team and market position.”
Recently named one of CRN®’s 2017 Tech Elite Solution Providers, DynTek provides professional IT solutions across a broad range of areas such as Cybersecurity, Data Center, Cloud Computing and more. The company holds top medallion-level partnerships across a broad range of industry-leading technology manufacturers, including Cisco Gold, Citrix Platinum, Microsoft Gold, McAfee Platinum, NetApp Gold and many more.
“DynTek is a strong company with a proven ability to provide tailored solutions for their clients,” said Anthony Lingafelt, Director, Supply Chain Finance, Wells Fargo Capital Finance. “We are very pleased to have been able to complete such significant financing that will enable DynTek the financial flexibility to continue their growth objectives.”
About Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of Wells Fargo & Company and its subsidiaries, and provides traditional asset-based lending, specialized senior and junior secured financing, accounts receivable financing, purchase order financing and channel finance to companies across the United States and internationally. Dedicated teams within Wells Fargo Capital Finance provide financing solutions for companies in specific industries such as retail, software and hi-tech, healthcare, commercial finance, staffing, government contracting and others. For more information, visit wellsfargocapitalfinance.com.
About Wells Fargo
Wells Fargo & Company (NYSE:WFC) is a diversified, community-based financial services company with $2.0 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,500 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 42 countries and territories to support customers who conduct business in the global economy. With approximately 273,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 27 on Fortune’s 2016 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.
About DynTek
DynTek is a leading provider of professional technology services to mid-market companies, such as state and local governments, educational institutions and commercial entities in the largest IT markets nationwide. From virtualization and cloud computing to unified communications and collaboration, DynTek provides professional technology solutions across the three core areas of our customers’ technical environment: Infrastructure/Data Center, Microsoft Platform, End Point Computing. DynTek's multidisciplinary approach allows our clients to turn to a single source for their most critical technology requirements. For more information, visit http://www.dyntek.com.
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Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements made in this press release, such as statements relating to the effect that the adoption of the revolving line of credit will have on our business and our intended use of funds borrowed under the revolving line of credit, involve known and unknown risks and uncertainties that could cause actual results to materially differ from the forward-looking statements. Such risks and uncertainties include, among others, our success in reaching target markets for services and products in a highly competitive market; our ability to maintain existing customers and attract future customers; our ability to finance and sustain operations, including our ability to comply with the terms of the revolving line of credit and the Company’s other existing and future indebtedness; our ability to achieve profitability and positive cash flow from operations; our ability to maintain business relationships with IT product vendors; the size and timing of additional significant orders for our products and services and our ability to fulfill such orders; the continuing desire of state and local governments to outsource to private contractors and the availability of budgets to place orders for our products and services; our ability to retain skilled professional staff and certain key executives; the performance of our government and commercial technology services; and the continuation of general economic and business conditions that are conducive to outsourcing of IT services. We have no obligation to publicly revise any forward-looking statements to reflect anticipated or unanticipated events or circumstances occurring after the date of such statements.