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ConvergeNet snaps up majority XDSL stake

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ConvergeNet, an ICT service and solutions company active in emerging global markets, has acquired a 51% stake in ISP XDSL. 

The move will bolster ConvergeNet's offering, providing its customers with connectivity through a trusted ISP, while enhancing its portfolio of subsidiaries. From its side, XDSL gains the backing of a JSE-listed organisation.
Danie Fourie, director of XDSL, says: "XDSL is in a serious growth phase and plans to become a tier one ISP that provides its customers with value-added services and a 'backbone' that can accommodate volumes. Through its majority shareholding, ConvergeNet provides us with the support we need to successfully grow the business. In addition, it bolsters our BEE status, positioning us more favourably in the market."
ConvergeNet is one of the fastest growing companies listed on the JSE and is acquiring companies to enhance its business.
One of its offerings is networking and XDSL is the ideal partner for providing connectivity and additional services. XDSL offers more than just connectivity though. It has structured packages that include capped and uncapped bandwidth, firewalls, self service and monitoring through a WebAdmin service, free online backup, Web and e-mail hosting and virtual private networks (VPNs).
Fourie comments: "We developed our own infrastructure. It is simple, straightforward and can be used in almost any country. It is ideal for emerging markets such as Africa, South America and parts of Asia."
Gordon Edwards, executive director at ConvergeNet, adds: "This makes XDSL the ideal partner for ConvergeNet in terms of our strategy to create a footprint in emerging markets such as Africa. XDSL will allow us to take a quality, service-oriented ISP service to these markets with many value-added benefits, creating a differentiator for us in these new markets."
With ConvergeNet's 51% stake in XDSL, the company is now following an aggressive strategy to acquire smaller ISPs that will benefit from a buy-out and provide XDSL with an increased user base.