The Huge Group, which has acquired iTalk Cellular, has ambitious plans to leverage the buyout to create new opportunities in the telecommunications market.
According to a statement from the group, iTalk fits with the vision of Huge to leverage its brand and increase its points of presence throughout South Africa.
There are synergies because Huge currently works in the corporate-based managed telecommunications business while iTalk has a consumer-related telecommunications business with strong brand credentials.
In addition, the annuity revenue base and earnings will be increased by the transaction.
Currently, iTalk doesn't focus on the cellular least cost routing (CLCR) market and, as such, complements the Huge business.
iTalk is expected to facilitate aggressive growth in Kwa-Zulu Natal, where Huge currently has a modest presence.
Conversely, Huge is stron in both the Cape and Gauteng which should help iTalk to grow is market share in these regions.