IQSTEL Announces Binding MOU to Acquire 51% of Ultranet Telecom Group
Major Acquisition Positions IQSTEL Over \$500 Million Revenue, Accelerates Global Expansion
IQSTEL Inc. (NASDAQ: IQST), a global leader in Connectivity, AI, and Digital Services, has announced a binding Memorandum of Understanding (MOU) to acquire a controlling 51% stake in Ultranet Telecom Group. This marks the largest acquisition in IQSTEL’s history and is poised to significantly transform the company’s financial and operational profile.
Key Highlights of the Transaction
- Ultranet Telecom Group Contribution: Based on FY2025 audited financials, Ultranet is expected to add approximately \$130 million in annual revenue and \$4.5 million in net profit.
- Corporate Milestone: This acquisition enables IQSTEL to exceed a \$500 million annualized revenue run rate, a significant step toward its strategic goal of becoming a \$1 billion global technology-driven corporation.
- Contingent Consideration: Notably, 60% of the acquisition consideration is contingent upon Ultranet achieving specified net income targets over the next 24 months, ensuring a performance-driven structure that aligns interests and mitigates risk.
- Global Expansion: The combined entity will operate in approximately 30 countries across 5 continents, enhancing IQSTEL’s presence in Africa, the Middle East, and Asia.
Strategic Rationale and Synergies
IQSTEL CEO Leandro Iglesias emphasized the partnership’s strategic nature, combining Ultranet’s robust African telecom platform with IQSTEL’s global commercial infrastructure, AI capabilities, and digital services vision. The partnership aims to accelerate Ultranet’s growth in Africa and facilitate its expansion into the Middle East and Asia.
- Ultranet’s management, led by CEO Raymond Oppong-Dapaah, will continue day-to-day operations, gaining access to expanded financial, technological, and global resources.
- The merger is expected to deliver operational synergies, cost efficiencies, and stronger international interconnection capabilities.
- The deal bolsters IQSTEL’s ability to scale high-margin digital services, AI, and fintech offerings.
Ultranet’s Platform and Strategic Assets
- Ultranet operates in Ghana, Nigeria, Mali, Burkina Faso, Senegal, and Ivory Coast, with commercial activities in Europe, Asia, and North America.
- A key asset is Ultranet’s portfolio of six exclusive international SMS gateway agreements with leading African mobile operators, providing sole international SMS routing rights—high-barrier-to-entry assets with recurring revenue and strong commercial value.
Transaction Timeline and Terms
- The parties are working toward a Definitive Purchase Agreement within 60 days, targeting closing in Q3 2026.
- Financial terms are not disclosed; further details will be filed in a Current Report on Form 8-K with the SEC.
- The transaction is subject to due diligence, negotiation of definitive agreements, and customary closing conditions, including regulatory approvals from the Ghana NCA and Nigeria NCC.
Potentially Price-Sensitive Information for Shareholders
- Major Revenue and Earnings Impact: The acquisition is projected to increase IQSTEL’s net income from operations by four times, a substantial financial uplift.
- Performance-Linked Structure: The contingent consideration limits downside risk for IQSTEL shareholders if Ultranet does not meet profit targets.
- High-Barrier Strategic Assets: Ultranet’s exclusive SMS gateway agreements add recurring revenues and competitive advantages.
- Global Reach and Synergy: The combined company’s expanded presence and operational scale could open new markets and revenue streams, potentially impacting the company’s valuation and share price.
- Risks: The deal is subject to regulatory approvals and successful integration. Any delays or changes could affect the anticipated benefits.
Additional Investor Information
- IQSTEL’s CEO and CFO will discuss the company’s vision and business plan execution in the Seth Farbman Podcast.
- IQSTEL operates in 21 countries with over 600 telecommunication carrier interconnections and is expanding into AI-powered communications and cybersecurity.
- For more information, visit www.IQSTEL.com and the official investor landing page.
Forward-Looking Statements Disclaimer
Disclaimer: This article contains forward-looking statements, including those regarding the expected benefits, timing, and financial impact of the proposed Ultranet acquisition. Actual results may differ materially due to risks and uncertainties, including regulatory approvals, integration challenges, performance targets, market competition, and other factors described in IQSTEL’s SEC filings. Investors should not rely solely on these statements and are encouraged to monitor company releases and filings for updates.
