Digerati Technologies, a cloud services provider specializing in the delivery of UCaaS (Unified Communications as a Service) solutions for SMBs across the U.S., has completed the acquisition of SkyNet Telecom. San Antonio-based SkyNet is a provider of cloud communication and broadband solutions tailored for businesses.
The acquisition of SkyNet would expand Digerati’s presence in Texas by over 215 percent, bringing the total number of corporate clients in the Lone Star State to 737. Financial terms of the deal were not disclosed. As a result of this transaction, Digerati’s operating subsidiaries will now service over 3,100 business clients and roughly 33,000 users in Texas and Florida, the second and fourth biggest economies in the United States, respectively.
“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,” said Arthur L. Smith, Chief Executive Officer (CEO) at Digerati Technologies. “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.”
“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,” added Mr. Smith. “We are excited about our future in Texas with this business combination.”
Digerati Solutions Portfolio
SkyNet is projected to have an immediate and beneficial impact on Digerati’s consolidated EBITDA and operating income, with significant benefits expected in FY2022 from cost synergies and consolidation savings resulting from this transaction.
“We are excited for our team and the increased opportunities this business combination brings to our customers,” said Paul Golibart, President at SkyNet. “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.”
Digerati’s solutions portfolio includes the following: cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the distribution of digital oxygen across its broadband network. The company aims at serving the worldwide demands of small companies seeking easy, flexible, reliable, and cost-effective communication and network solutions.