The Vodacom Group believes its acquisition of the carrier services and business network solutions subsidiaries of Gateway Telecommunications SA (Pty) Ltd will enhance its growth in Africa.
The South Africa-based company said the deal would broaden its international presence in key markets throughout Africa, especially in Nigeria, and created a platform for future expansion.
“Vodacom has sustained double digit growth for more than a decade. As mobile phone penetration levels increase in South Africa, we are actively repositioning Vodacom as a total communications provider with new avenues for growth.
“The Gateway acquisition is a key part of this strategy and I am pleased to announce that the transaction has now been concluded,” said Vodacom Group chief executive officer Pieter Uys.
The Gateway boss Peter Gbedemah said was equally enthusiastic.
“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,” said Gbedemah.
The transaction, originally announced on 29 August last year, has received approval from the competition authorities in South Africa and Tanzania and from the South African Reserve Bank.
According to the deal, Gateway will retain its current executive team and will be managed as an independent entity. The Gateway brand will also be retained.