Vodacom takes XLink stake

Johannesburg, 07 Nov 2007

Vodacom Ventures, the investment arm of cellular giant Vodacom, has taken a 35% stake in XLink Communications.

The local provider of GPRS-based electronic funds transfer hopes to leverage this partnership with Vodacom for further growth.

Anton Leal, MD of XLink, explains: "This deal opens up many opportunities for us in the local market and throughout the continent. On an immediate basis, the cash injection will be used to fund research and development. Going forward though, the relationship could help us extend our African footprint beyond the eight countries we currently operate in."

Vodacom Ventures MD Tlhabeli Ralebitso says the deal is in line with the group`s increasing focus on data services.

"Data services make up an increasingly important part of Vodacom`s revenue. Take-up of data services - such as those offered by XLink - is seen as a prime way to increase the group`s revenue and profit in the future," he says.

Upping access

Another aspect to the deal, which will be instrumental to XLink`s progress, is its access to Vodacom infrastructure and insight.

Leal explains: "There are many benefits to this deal. For instance, we will have access to Vodacom`s corporate sales team; admission to its laboratories for testing of products; and an opportunity to make some of our offerings available through Vodacom`s retail network."

Most of these would take years to build up if it was operating on its own, adds Leal.

The value of the deal has not been disclosed.