Business
Digerati Technologies Provides Update on its SkyNet and NextLevel Internet Acquisitions
Digerati Technologies Provides Update on its SkyNet and NextLevel Internet Acquisitions.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n SAN ANTONIO, July 19, 2022 (GLOBE NEWSWIRE) -- Digerati Technologies, Inc. (OTCQB: DTGI) (\"Digerati\" or the \"Company\"), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, is pleased to provide an update on the integration of its SkyNet and NextLevel Internet acquisitions that were closed in December 2021 and February 2022 and contributed to the Company’s highest quarterly revenue in its history. The Company is approximately six months into its integration playbook that has resulted in the following: Appointment of Patti Cuthill from NextLevel Internet as VP of People and Culture for the entire organization.Appointment of George Robyn from NextLevel Internet as VP of Engineering and DevOps for the entire organization.Armando Muniz, who joined the Company via the acquisition of ActivePBX in November 2020, was appointed Director of Voice Engineering for the entire organization.Other re-alignments throughout the organization to gain efficiencies and maximize team productivity.Annualized cost synergies of approximately $500K that are expected to continue contributing to OPCO EBITDA in the coming quarters. The Company and its subsidiaries now serve over 4,000 business customers and approximately 45,000 users, with a run-rate of over $32 million in annual revenue. As previously highlighted, some of the operating efficiencies, expected cost synergies and consolidation savings from the SkyNet and NextLevel acquisitions were realized over several months following the closing of the transactions. As a result, all of Digerati’s financial measures have steadily improved over the past several months which contributed to an increase in gross margin to 61.3% and improvement in non-GAAP operating EBITDA (OPCO EBITDA) to $0.969 million for the three months ended April 30, 2022. The Company continues to execute on its integration playbook and expects additional cost synergies over the next two to three quarters. In addition, NextLevel was recently awarded and certified a Great Place to Work for the third year in a row. The prestigious award is based entirely on what current employees say about their experience working at NextLevel. This year, 97% of NextLevel’s employees said it is a great place to work, compa...