ConvergeNet has agreed to buy 74% of Future Cell for about R68-million in cash and shares.
Cell is a focused mobile telecommunications company with a good market share in the pre-paid distribution business. It employs 23 people and currently distributes its pre-paid products in a number of provinces country-wide.
The acquisition is in line with ConvergeNet`s strategy to acquire appropriate vehicles through which to position itself as a significant ICT industry player.
The group will also benefit from the annuity profile of Future Cell`s income. ConvergeNet regards Future Cell`s pre-paid distribution technologies and skills as strategic in emerging markets.
The Future Cell management team will continue to manage the company.
The acquisition of Future Cell will enhance ConvergeNet`s earnings and will provide good opportunities for organic growth.