Vodacom now owns 51 percent stake in Stortech

Vodacom received the approval of the Competition Tribunal to take a 51 percent stake in managed services business Storage Technology Service (Stortech). According to Moneyweb, Stortech will retain 18 percent and 31 percent will stay in the hands of the company’s black empowerment partners.

The report stated that this is Vodacom’s second deal this month after getting the approval to buy a division of international infrastructure business, Gateway for US$700 million.

Vodacom CEO, Pieter Uys said during last year’s acquisition announcement that Stortech will give Vodacom access to additional technical and engineering skills and will release synergies. The company noted that the acquisition will help to diversify the business Vodacom offers. According to Uys, Stortech’s portfolio will help expand Vodacom’s data centre services capabilities.

The report concluded that Tim Knowles, Stortech CEO, is looking forward to establish a productive relationship with Vodacom and believes that they will become part of a growing force in the ICT business service market.–Natalie Grobler.