Convergence Partners Investments, a BEE investment company in the technology, media and telecommunications sector, has taken a stake in Integrat, a Wireless Applications Service Provider (WASP) Aggregator with related interests in digital content, online platforms and other ancillary activities.
WASPs are companies that connect to the cellular operators to provide services to the networks’ clients, usually in the form of premium-rated Short Message Services (SMS). As an Aggregator, Integrat supports its WASP customers with best-of-breed, locally developed, solutions offerings to seamlessly connect into South Africa’s regulated mobile networks in a matter of days, rather than months.
Integrat’s offerings are globally competitive and have evolved over the years to include various value-added services, such as content manager, campaigns manager, mobile payment systems and other mobile handset-focused services. These products allow customers to deliver services within a very short time and without having to take responsibility for any development.
Andile Ngcaba, chairman of Convergence Partners, says: “Aligned with the massive cellular phone uptake in South Africa, the mobile content market is a key growth area in the telecommunications sector, particularly as voice becomes increasingly commoditised and mobile operators focus on data offerings to grow revenues.
“This investment is perfectly aligned with our belief that the digital media space is set to experience significant growth as content quantity increases and the medium through which it is consumed evolves to include non-traditional devices such as mobile handsets, which are increasingly including non-voice related features and functions.”
When combined with Integrat’s internal employee’s trust, Convergence Partners’ investment will result in the company increasing its BEE ownership to 24%. This acquisition is in line with Convergence Partners’ focus on companies with good growth potential, strong management and compelling intellectual property.
Commenting on the deal, Norman Parkin, MD of Integrat, says: “Being an entrepreneurial business, we were looking for a BEE investor that could support our growth development through strategic value-add and in-depth sector knowledge. We are delighted to have Convergence Partners onboard and look forward to a mutually beneficial relationship as we take full advantage of the growth opportunities in the digital content space and related areas.”