Seacom to spend R145million on iOCO divisions
Seacom is planning to bolster its tier one global network and enterprise portfolio through the acquisition of iOCO divisions EOH Network Solutions (EOH-NS) and Cape Town-based operator, Hymax.
Group CEO Oliver Fortuin said the deal will "transform the business into a converged telecommunications provider across Africa". Seacom will pay R144.9 million for its new assets.
“By expanding our on-net capabilities and reach with this acquisition and the acquisition of Hirani Telecom in Nairobi and Africell Uganda’s infrastructure, Seacom aims to provide customers with comprehensive enterprise-grade ICT solutions and quality connectivity,” said Fortuin.
He went on to state the aim is to create end-to-end ICT solutions for enterprises that would combine hosting, security, and network connectivity
"Managed services form an important part of that goal, and with EOH-NS by our side, we are reaching for it,” Fortuin said.
Seacom has signed an agreement to purchase EOH, however timelines have not been disclosed and details on the integration and operational structures of the merged entity will not be confirmed until the deal is approved by regulators.
EOH-NS was founded in 2003 and acquired by EOH in 2010 and in addition to its ICT services provision offers a wide range of voice, managed networks, security, cloud, and server hosting products.
Details of the Hymax portion of the deal are equally thin on the ground, however Stephen van Coller, EOH Group CEO said: “I believe that Seacom, as a leading ICT and internet connectivity supplier for African enterprises, will provide a compelling opportunity for value unlock for EOH-NS and Hymax both for existing and future clients and the transferring employees.
"The embedded relationships that exist between our customers and other EOH business units will remain as is and the EOH Infrastructure Services business is positioned to benefit from the transaction as we leverage the Seacom connectivity expertise.”