Pan-African telecommunications service provider Seacom is set to acquire technology services company EOH’s Network Solutions (EOH-NS) and Hymax businesses for R144.9-million.
The agreement comes as EOH progresses its targeted disposals strategy, which includes assets that are capital intensive, with the proceeds from the sale, net of costs, directed, primarily, to the further reduction of EOH’s debt.
“In support of this and owing to EOH’s current capital constraints, relative to mobile network operators, and as the group prioritises creating a fit-for-purpose capital structure, we have looked to ensure that EOH-NS and Hymax can continue investing in world-class infrastructure and maintain their service excellence,” explained EOH group CEO Stephen van Coller.
EOH-NS and Hymax, which are strategic and essential partners to a variety of enterprise clients covering multiple verticals across the private and public sectors, have vast experience in the delivery of wholesale and managed service solutions for the networking and voice segments of the telecommunications industry.
“The acquisition of EOH-NS and Hymax forms part of Seacom’s ambitious growth strategy that will transform the business into a converged telecommunications provider across Africa,” said Seacom group CEO Oliver Fortuin.
“By expanding our on-net capabilities and reach with this acquisition, and the acquisition of Hirani Telecom and Africell Uganda’s infrastructure, Seacom aims to provide customers with comprehensive enterprise-grade information and communication technology (ICT) solutions and quality connectivity.”
“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.
“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,” concluded Van Coller.
Source: EngineeringNews
