Dimension Data today officially announced it has agreed terms to dispose of its 100% interest in internet service provider (ISP) Mweb to Webafrica Networks.
This after a report by Techcentral yesterday.
The specific terms of the deal were not disclosed. In a joint statement, the companies say the closing of the transaction will be subject to customary conditions, including approval from the regulator.
Mweb is one of South Africa’s oldest ISPs, going live in 1997.
It pioneered uncapped internet access and is one of the leading ISPs in the market. Mweb works with fibre network operators and mobile network operators to provide fibre and wireless internet connectivity.
It appointed Manelisa Mavuso as its managing director in October 2021.
This transaction is in line with Dimension Data’s strategy of focusing on core markets servicing the enterprise client base, says the system integrator in a statement.
Alan Turnley-Jones, CEO of Dimension Data, says: “We are continually refining our portfolio of services to ensure relevance to our clients. Dimension Data is also on a journey to integrate with our global shareholder, NTT.
“The decision to sell Mweb will enable us to accelerate this journey and focus on our core competencies, while leveraging NTT’s capability in platform-delivered managed services.”
“We’re ecstatic to bring onboard one of SA’s most loved brands and can’t wait to welcome their staff and customers into the Webafrica family,” says Sean Nourse, CEO of Webafrica.
“The acquisition bodes well for consumers, as the combined entity will be able to leverage economies of scale, which in turn unlocks costs savings and better value for consumers in the long run.”
Responding to ITWeb’s questions via e-mail, the companies say there will be no change to employee contracts following the deal, as this is a shareholding change.
According to the firms, Mweb currently has a staff complement of about 250 employees.
“Mweb has been a valuable and important asset to the Dimension Data portfolio, and Dimension Data had numerous attractive offers to purchase the business,” says the NTT-controlled Dimension Data, noting Webafrica was the best fit for consumers.
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