The subsidiaries, Synergy Telecom and T3 Communications, were recently acquired by Digerati. In fact, the Company acquired Synergy in December of 2017, followed by the acquisition of T3 in May of 2018. While these are relatively newly acquired assets, we are already seeing impressive movement from both.
Since its acquisition of Synergy, Digerati Technologies has doubled the Company’s Texas-based revenues. This was done by adding a solid base of customers throughout Texas. The Company is currently providing services to municipalities like the cities of Alice, Benbrook, Lake Worth, as well as others throughout the State. Moreover, the Company has established relationships with business clients like Texas Workforce Solutions, Becker Vineyards, Star Shuttle, the McNay Art Museum, and many others.
When the Company acquired T3, it combined the business with Synergy. This was an important move, as T3 is an established player in the VoIP and cloud communications industry. As a result of the business combination, a telephony operator that serves approximately 10,000 businesses in Florida and Texas was born. Today, the combined entity generates about $6.2 million in annual revenue and positive cash flow from operations.
Digerati Technologies offers a compelling growth opportunity in the fact that it is bringing some structure to a highly-fragmented market. Today, the market is littered with regional VoIP/Cloud communications providers with relatively low values. The Company plans to bring these providers together via acquisition. In fact, the recent acquisitions of Synergy and T3 serve as a foundation for this “consolidation” strategy. Essentially, the Company plans on acquiring providers that are currently generating between $2 million and $10 million in annual revenue while producing positive cash flow from operations. In doing so, the Company will be able to create cost synergies that produce additional profits and improved returns. This is done through the integration of telecommunication infrastructure, back office systems, and network facilities.