IQSTEL ANNOUNCES BINDING MOU TO ACQUIRE 51% INTEREST IN ULTRANET TELECOM GROUP

IQSTEL Inc. (NASDAQ: IQST) has announced a Binding Memorandum of Understanding to acquire a 51% controlling interest in Ultranet Telecom Group, a telecommunications and technology company based in Ghana. The deal, which is expected to close in the third quarter of 2026, aims to significantly enhance IQSTEL's revenue and net income, with Ultranet projected to contribute approximately $130 million in annual revenue and an estimated $4.5 million in net profit based on its fiscal year 2025 audited financial statements. The financial terms of the transaction have not been disclosed.

Ultranet Telecom Group operates across several African nations, including Ghana, Nigeria, and Senegal, and has established commercial activities in Europe, Asia, and North America. One of its key strategic assets is a portfolio of exclusive international SMS gateway agreements with major African mobile operators, which grant Ultranet sole international SMS routing rights in their respective markets. This strategic positioning not only provides a recurring revenue stream but also establishes high barriers to entry for potential competitors in the region.

The acquisition is poised to be the largest in IQSTEL's history and marks a significant milestone as the company aims to surpass a $500 million annualized revenue run rate. The transaction aligns with IQSTEL's strategic vision to evolve into a $1 billion global technology-driven corporation. By combining Ultranet's established African telecom platform with IQSTEL's global infrastructure and digital services capabilities, the two companies anticipate accelerated growth opportunities, particularly in high-margin digital services, artificial intelligence, and fintech sectors.

IQSTEL's CEO, Leandro Iglesias, emphasized the strategic partnership aspect of the transaction, highlighting the potential for operational synergies and enhanced international interconnection capabilities. The deal is structured to align the interests of both parties, with 60% of the consideration contingent on Ultranet achieving specified net income targets over the next 24 months. This performance-driven approach is expected to reinforce the partnership's long-term viability and success.

As the telecommunications sector continues to evolve, driven by increasing demand for connectivity and digital services, this acquisition could have broader market implications. The combination of IQSTEL's and Ultranet's resources may position them to capitalize on emerging opportunities in the African, Middle Eastern, and Asian markets. The anticipated expansion into these regions aligns with global trends emphasizing the importance of telecommunications infrastructure in supporting economic growth and technological advancement.