IQSTEL Acquires 51% Controlling Interest in Ultranet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 04 2026
0mins
IQSTEL Inc. announced a Binding Memorandum of Understanding, or MOU, to acquire a 51% controlling interest in Ultranet Telecom Group, a telecom and technology company headquartered in Ghana with operations across Africa and international markets. The transaction is projected to add approximately $130M in annual revenue and approximately $4.5M in net profit based on Ultranet's FY 2025 audited financial statements. 60% of the consideration is contingent upon Ultranet achieving specified net income targets over the next 24 months. Ultranet operates across Ghana, Nigeria, Mali, Burkina Faso, Senegal, and Ivory Coast, with commercial activities in Europe, Asia, and North America. The combined platform is expected to operate in approximately 30 countries across 5 continents. The parties are working toward a Definitive Purchase Agreement within 60 days, with a target close in Q3. Financial terms are not being disclosed at this time.
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About IQST
IQSTEL Inc. is a multinational technology company offering cutting-edge solutions in telecom, fintech, blockchain, artificial intelligence (AI), and cybersecurity. The Company offers services through its four business divisions in the telecommunications, electric vehicle (EV), fintech, and AI-enhanced metaverse industries. The Telecom Division offers Internet protocol (VoIP), short message service (SMS), proprietary Internet of Things (IoT) solutions (www.iotsmartgas.com and www.iotsmarttank.com), and international fiber-optic connectivity. The Company’s developing Fintech Business Line offers a complete Fintech ecosystem MasterCard Debit Card, US Bank Account (No SSN Needed), Mobile App/Wallet (Remittances, Mobile Top Up). Its EV Business Line offers electric motorcycles for work and recreational use in the United States, Spain, Portugal, Panama, Colombia, and Venezuela. Its AI-Enhanced Metaverse Division offers a full suite of immersive content services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Valuation Discrepancy: Despite generating hundreds of millions in annual revenue and holding tens of millions in assets, management believes the current market valuation fails to capture the operational scale and future earnings potential, emphasizing that the buyback represents an attractive opportunity to create shareholder value.
- Acquisition Intent Strengthened: IQSTEL has signed a binding MOU to acquire a 51% interest in Ultranet Telecom Group, which is expected to increase net income by approximately 4X, further strengthening its global business platform.
- Strategic Development Direction: The buyback program is part of a broader corporate strategy aimed at addressing the significant disconnect between market capitalization and the underlying value of the company through continued execution and strategic acquisitions.
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- Revenue Growth Projection: Based on Ultranet's FY 2025 audited financial statements, IQSTEL anticipates the transaction will add approximately $130 million in annual revenue and about $4.5 million in net profit, providing crucial support for the company's financial health.
- Market Reaction: Despite the potential strategic value of the acquisition, IQSTEL's shares fell nearly 15% during pre-market trading on Thursday, reflecting cautious market sentiment that may impact investor confidence.
- Strategic Value Enhancement: IQSTEL emphasized that the acquisition will create substantial strategic value by expanding telecom infrastructure and carrier operations, accelerating growth in high-margin digital services, AI, and fintech, while increasing its presence in Africa, the Middle East, and Asia.
See More
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- Strategic Milestone: This acquisition will push IQSTEL's annualized revenue run rate above $500 million, further accelerating its strategic path toward becoming a $1 billion global technology-driven corporation, demonstrating its commitment to expanding in the global market.
- Performance-Driven Structure: Sixty percent of the transaction consideration is contingent upon Ultranet achieving specified net income targets over the next 24 months, aligning the interests of both parties and reinforcing a performance-driven transaction structure that ensures mutual efforts toward growth.
- Global Expansion Plans: With operations across multiple African countries, Ultranet plans to leverage IQSTEL's global commercial infrastructure and digital services vision to accelerate its expansion into the Middle East and Asia, with expectations to operate in approximately 30 countries, creating a robust international ecosystem.
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- Improved Profitability: iQSTEL continues to enhance EBITDA performance through operating leverage and the commercialization of higher-margin digital services, which is expected to further strengthen the company's financial health and investment appeal.
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