San Antonio-based Digerati Technologies Inc. announced its acquisition of SkyNet Telecom — a local provider of commercial cloud communication and broadband for businesses — on Wednesday.
SkyNet Telecom joins Digerati's other operating subsidiaries T3 Communications and Nexogy.
The SkyNet acquisition, made with Digerati's $20 million financing facility with private equity firm Post Road Group, will increase the company's customer base by more than 215%, adding 737 Texas customers. Digerati's operating subsidiaries will be responsible for 3,100 business customers and 33,000 users overall in Texas and Florida.
The company anticipates that with the acquisition of SkyNet, these operating subsidiaries will generate $18.5 million in revenue, continuing to improve its operating income in 2022. Digerati is a telecom and technology provider of communication and network solutions.
SkyNet Telecom is a San Antonio-headquartered hosted private branch exchange and voiceover internet protocol founded in 2021 as a Novatel Networks business unit. Arthur Smith, CEO of Digerati, said the addition of SkyNet will not only increase revenue and add customers to its portfolio, but will expand its service and support capabilities throughout Texas.
"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," he said.
He noted that SkyNet suited Digerati's mergers and acquisition plan and, since the two companies have nearly identical technology stacks, would provide predictable recurring revenue with high gross margins.
SkyNet President Paul Golibart said the acquisition will increase opportunities for customers and help them expand into new markets.
"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," he added.
