IQSTEL to Acquire 51% of ULTRANET, Boost Net Income by $4.5M
IQST•IQSTEL announced a binding MOU to acquire 51% of ULTRANET Telecom Group, adding $4.5M net income, $130M revenue, lifting its run rate to $560M. The deal expands operations into six African markets and bolsters its digital services platform targeting 23 million users in fintech, cybersecurity, AI and digital health.
1. ULTRANET Acquisition Details
IQSTEL signed a binding MOU to acquire a 51% controlling interest in ULTRANET Telecom Group, marking the largest deal in the company’s history. ULTRANET is a profitable, fully audited operator across six African countries, contributing $130M in annual revenue, $21M in assets and $13M in equity based on FY 2025 figures.
2. Profitability Impact
Upon closing in Q3, the transaction is expected to add $4.5M in annual net income—approximately four times current operational net income—and deliver $9M in combined Adjusted EBITDA. This positions IQSTEL roughly halfway toward its $15M mid-term EBITDA target.
3. Digital Services Strategy
IQSTEL is leveraging its global operator network—accessing 2.3 billion end users—to deploy high-margin digital services. The expanded platform targets an addressable market of 23 million users across fintech, cybersecurity, artificial intelligence, digital health and digital content, with ULTRANET’s African channels accelerating regional growth.
4. Revenue Growth Trajectory
The company has grown revenue from $13.8M in 2018 to a projected $430M organically in 2026, with the ULTRANET acquisition lifting the run rate to $560M. Management maintains a target of $1 billion in annual revenue by 2027, driven by continued M&A and digital services expansion.
