SA telecommunications giant Vodacom has snapped up a controlling interest of 51% in managed services company StorTech.
Vodacom incoming CEO Pieter Uys says: "The launch of Vodacom Business in February this year signalled our intention to diversify Vodacom's activities into the convergence space, and to invest in new avenues for growth. The acquisition of a shareholding in StorTech is a continuation of this process."
After Vodacom's 51% stake, 31% will remain with StorTech's BEE partners and the remaining 18% will stay in the hands of StorTech management. Vodacom has not yet confirmed the value of the deal.
"StorTech is already a supplier to Vodacom and, as a subsidiary, Stortech will give Vodacom access to additional technical and engineering skills and will release synergies," says Uys.
He says there is a strategic fit between StorTech and Vodacom, the combination of which will provide benefits to both companies and their customers.
"StorTech's portfolio complements Vodacom Business's enterprise solutions-focused division and expands upon Vodacom's data centre services capabilities."
StorTech CEO Tim Knowles says the company is looking forward to a productive relationship with Vodacom. "StorTech is delighted with the merger and I am personally excited that my management and I will be staying onboard as part of a growing force in the ICT business services market."
The transaction remains subject to certain closing conditions, including approval from the relevant competition authorities in SA.
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