Alternative Exchange-listed telecommunications company DataPro has implemented its R70 million acquisition of Definity Telecommunications, following Competition Commission approval.
In a note to the JSE on Friday, just after the close of business, the company, which provides Internet, data and voice over IP (VOIP), least-cost routing (LCR) and wireless services, said the acquisition had been implemented.
Its shares closed up at 65c on Friday, 2c higher than the closing price on the previous day.
The Definity acquisition is expected to add R9 million a month to DataPro`s monthly annuity book. Its interim results to end-February revealed it achieved revenue of R78.7 million and gross profit of R31.3 million.
Growth strategy
On 16 May, DataPro announced it had acquired all the shares in the company and its board had approved the acquisition.
DataPro has been preparing for the advent of telecommunications deregulation, especially with regard to VOIP and LCR.
In May, it told the JSE: "Deregulation has, to a large extent, spurred recent market consolidation in both the data and voice arenas as the opportunities for, and value of, alternative telecommunication providers becomes increasingly evident."
The acquisition forms part of its strategy to build and acquire critical mass in the "fragmented Internet service provider and voice sectors".
It anticipates this acquisition will be complementary to its current offerings. Payment was made 50% in cash and 50% through shares.
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