Vodacom's $700 million acquisition of a part of Gateway Telecommunications has received the go-ahead from competition authorities in SA and Tanzania, as well as from the South African Reserve Bank.
The deal, which was first announced at the end of August last year, sees Vodacom taking control of Gateway's carrier services and business network solutions divisions. “As mobile phone penetration levels increase in SA, we are actively repositioning Vodacom as a total communications provider with new avenues for growth,” said Vodacom CEO Pieter Uys in a media statement.
The deal with Gateway is intended to be a key part of the company's portfolio expansion, bringing to SA's telecoms darling a larger African presence, especially in Nigeria. “I'm pleased to announce that the transaction has now been concluded.”
Gateway is expected to retain its management staff, as well as its own brand, however, Uys has previously indicated that this may not be a permanent solution. Speaking at the announcement of the deal last year, Uys said: “[Gateway] is a good brand. We are not going to change the brand immediately. We will keep the company as a separate entity; we are going to keep existing management.”
Vodacom will also integrate some of its products and services into the Gateway brand, as well as take some of the services offered by Gateway. For the international satellite business, access to Vodacom's local fibre will be a coup.
Gateway CEO Peter Gbedemah said in a statement: “Vodacom and Gateway are a formidable combination. Gateway has a physical presence in 13 countries and provides services across 40 African countries. We have a unique pan-African service provider model and to this Vodacom brings additional resources, efficiencies and a wider product range.”
Media reports indicate that Vodacom was confident of gaining the competition authorities' approval, which was bolstered by its decision to become a New Dawn Intelsat customer in a new venture which was launched near the end of last year. The venture will see increased satellite backhaul and broadcasting brought to Africa to the tune of $250 million.
The satellite will carry wireless backhaul, broadband and television content to the African continent. It will be marketed and operated as part of the Intelsat fleet.
Vodacom made several acquisitions last year, including a controlling interest of 51% in managed services company StorTech.
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