Expands Cloud Communication and Broadband Solutions Footprint in Texas
Adds $3.4 Million in Annual Revenue
Digerati Technologies, Inc., a provider of cloud services specializing in UCaaS solutions for the small to medium-sized business (“SMB”) market, is pleased to announce the completion of the acquisition of San Antonio-based SkyNet Telecom (“SkyNet”), a leading provider of cloud communication and broadband solutions tailored for businesses.
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The acquisition of SkyNet expands the Company’s footprint in Texas and increases its customer base by over 215% to 737 business customers in the Lone Star State. On a consolidated basis and as a result of this acquisition, Digerati’s operating subsidiaries will now serve over 3,100 business customers and approximately 33,000 users in Texas and Florida, the 2nd and 4th largest state economies by GDP in the USA. Based on the quarter ending October 31, 2021 on an annualized basis, the Company expects its operating subsidiaries will generate $18.5 million in annual revenue with the addition of SkyNet. SkyNet is expected to have an immediate and positive impact on the consolidated EBITDA and operating income of the Company with additional improvements to be realized during FY2022 from the anticipated cost synergies and consolidation savings derived from this acquisition.
Paul Golibart, President of SkyNet, stated, “We are excited for our team and the increased opportunities this business combination brings to our customers. From CRM integration to wireless business continuity solutions, our portfolio of products is enhanced tremendously going forward. We look forward to working with the Digerati team to bring these solutions to our customer base and expand into new markets.”
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Arthur L. Smith, Chief Executive Officer of Digerati, commented, “In addition to increased revenue and adding a solid base of customers to our portfolio, the acquisition of SkyNet will expand our service and support capabilities in the growing Texas market. We also plan to adopt SkyNet’s go-to-market strategy in secondary and tertiary high-growth markets that are just opening to a competitive environment that allows number portability.”
Mr. Smith continued, “SkyNet fit our disciplined M&A plan and business model perfectly with its identical technology stack and strong and predictable recurring revenue with high gross margins under contracts with business customers. We are excited about our future in Texas with this business combination.”
The Company utilized its $20 million financing facility with Post Road Group to complete its acquisition of SkyNet Telecom.
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