Gateway Communications, the largest independent provider of carrier and business network solutions in Africa, is set to strengthen its presence in Africa following its acquisition by South African mobile operator Vodacom.
The company, which has customers in over 40 African countries, has strong roots in South Africa, having originated in this country under the banner of GS Telecoms. However, the company saw great opportunities for growth in Africa and focused most of its investment on the continent.
Gateway currently employs 350 staff members in 17 countries throughout Africa and Europe and connects over 583 million people on its network across the continent. In Europe it has offices in Belgium, France and the United Kingdom.
Vodacom announced at the end of August that it was acquiring the carrier and business solutions segment of Gateway Communications for US$675 million and a makewhole payment of approximately US$25 million in relation to Gateway's high-yield bond.
"This is another exciting milestone in Gateway's development as a unique pan-African service provider. The deal will increase the company's resources, efficiency, economies of scale and its product range," says Peter Gbedemah, CEO of Gateway Communications.
It will also allow Gateway Communications to expand its product range, giving customers more choice. "The benefits of this transaction also include increased network capacity and connectivity, access to capital for investment in African infrastructure and better quality and customer-focused local support," he says.
Service offering
Gateway Communications offers African telecommunications companies with secure, high-speed, reliable voice and bandwidth services.
Carrier services include voice services, secure, high speed, reliable bandwidth services in Africa, as well as value added services. Gateway also provides managed communications services to financial institutions, mining, construction, manufacturing, logistics and hospitality sectors across Africa.
Gateway Communications' integrated network solutions use the latest technologies, enabling African mobile operators to rapidly grow coverage and win subscribers while ensuring revenues are matched against infrastructure costs.
In addition, the company also provides a technical team that assists in the deployment of networks, and ensures the project is done on time, on budget.
Retaining independence
Gbedemah says Gateway Communications will continue to be an independently managed company. This means it will continue to be run by the existing management and staff, including responsibility for customer service and product development and the day-to-day running of the business in all respects. There will be no change to the company name, brand and products, he adds.
Vodacom's CEO designate Pieter Uys says the acquisition of Gateway gives Vodacom a unique opportunity to expand as a pan-African total communications provider.
"It will enhance our position with multinational corporations and give us further exposure to Africa's significant growth potential in business services and connectivity," he says.
The purchase of Gateway Communications' carrier and business segments has no impact on Gateway Broadcasting Services, which will be retained by its current owners.
Gateway Broadcasting Services offers GTV, a pay-TV service that was launched a year ago and is expected to reach 48 African countries in the medium-term.
The service is available in Kenya, Uganda, Ghana, Tanzania, Botswana, Burundi and Namibia.
GTV also recently announced it was launching in Francophone African countries such as the Democratic Republic of Congo, Cameroon and Gabon in August, with more to follow over the next few weeks.
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