Digerati Completes SkyNet Telecom Purchase

Digerati Completes SkyNet Telecom Purchase

Enterprise Networking Mag | Saturday, January 15, 2022

In San Antonio, SkyNet Telecom is a prominent provider of cloud communication and internet solutions for enterprises.

FREMONT, CA: “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," states Paul Golibart, President of SkyNet. Digerati Technologies, a cloud services provider specializing in UCaaS solutions for the small to medium-sized business market, has completed its acquisition of San Antonio-based SkyNet Telecom, a leading provider of cloud communication and broadband solutions for businesses.

Since SkyNet's acquisition, SkyNet has increased its customer base in Texas by more than 215 percent to 737 corporate customers. Digerati's operating companies now serve over 3,100 commercial customers and nearly 33,000 users across Texas and Florida, the second and fourth largest states in the United States by GDP. Annualized, the company anticipates its operating companies to earn $18.5 million in sales by the end of the third quarter of 2021. Consolidated EBITDA and operating income are expected to improve immediately upon the purchase of SkyNet, with further enhancements expected in FY2022 due to anticipated cost synergies and consolidation savings as a result of this transaction.

Arthur L. Smith, Chief Executive Officer of Digerati, comments, “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 SkyNets go-to-market strategy in secondary and tertiary high-growth markets that are just opening to a competitive environment that allows number portability.”

To finalize the acquisition of SkyNet Telecom, the company used its $20 million credit arrangement with Post Road Group.

Mr. Smith continues, “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.”

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