Internet Solutions (IS), a division of Dimension Data, has signed a transaction agreement to purchase the MWeb ISP core network assets, MWeb Business and Optinet from MWeb Connect.
Dimension Data has also bought the WiFi assets of MWeb Connect, which will form part of a new company, WirelessCo, which will build and operate an open access carrier-grade WiFi network.
In terms of the IS deal, MWeb Connect will retain its consumer ISP business. This transaction, subject to Competition Tribunal (South Africa) approval, will see the transfer of the network assets and bandwidth contracts of MWeb Connect to Internet Solutions, a division of Dimension Data.
The transaction also includes the acquisition of Optinet and MWeb Business, both of which will also be managed by IS. MWeb Business, Optinet and MWeb Connect engineering and support employees will transfer with the transaction to IS.
Derek Wilcocks, CEO of Dimension Data Middle East and Africa, says: “MWeb Business and Internet Solutions will be able to service this market segment more competitively and ensure that the ICT offerings for this sector are designed and supported in a way that is economically viable and, importantly, support them in operating and growing their business.
“There is a strong strategic and cultural fit between MWEB Business and Internet Solutions and the combined entities will have the scale to compete in the SME market, whilst the SME market will benefit from access to a wider range of services, more market competitive prices, and greater support for their ICT.”
In terms of the WirelessCo announcement, this new company will be owned by Dimension Data (51%) and MultiChoice (49%) respectively. It will be headquartered in Johannesburg and will combine the WiFi network assets of Dimension Data-owned WiFi provider AlwaysOn, together with the WiFi assets of MWeb WiFi. The deal is subject to Competition Commission approval.
The AlwaysOn retail consumer business will continue to operate as a separate entity.
Employees of MWeb WiFi, as well as AlwaysOn employees who manage the AlwaysOn network, will be employed by WirelessCo.
Wilcocks comments: “A ubiquitous WiFi network for South Africa, built by WirelessCo will be a step forward to a ‘WiFi-first’ service as a viable and cost effective alternative to traditional data communication in a mobile environment, enabling more South Africans with affordable internet access. This company is committed to making the necessary investments to ensure WiFi is available everywhere and to everyone, driving digital inclusion for all of the country.”
Francois Theron, CEO of the MWeb Group says: “More and more businesses across almost all industry sectors are looking to extend or entrench their value proposition through digital strategies. We are excited to have the opportunity to build a platform that can connect these businesses to their customers.”