Seacom has announced its intention to acquire EOH Network Solutions (EOH-NS) and Hymax, divisions of iOCO and part of EOH.
To date, an “Intention to purchase” agreement between Seacom and EOH has been signed and submitted to the Competition Commission for approval. The transaction will conclude once approval has been received.
More details regarding the integration process and the agreed-upon organisational and operational structures will be announced following the approval of the acquisition.
“The acquisition of EOH-NS and Hymax forms part of Seacom’s ambitious growth strategy that will transform the business into a converged telecommunications provider across Africa,” says Oliver Fortuin, group CEO at Seacom. “By expanding our on-net capabilities and reach with this acquisition and the acquisition of Hirani Telecom in Nairobi and Africell Uganda’s infrastructure, Seacom aims to provide customers with comprehensive enterprise-grade ICT solutions and quality connectivity.”
Stephen van Coller, EOH group chief executive officer, comments: “EOH has embarked on a targeted disposals strategy which includes assets that are capital intensive. In support of this and due to EOH’s current capital constraints, relative to the Mobile Network Operators (MNOs), and as the Group prioritises creating a fit-for-purpose capital structure, we have looked to ensure that EOH-NS and Hymax can continue investing in world-class infrastructure and maintain their service excellence.
“I believe that Seacom, as a leading ICT and internet connectivity supplier for African enterprises, will provide a compelling opportunity for value unlock for EOH-NS and Hymax both for existing and future clients and the transferring employees. The embedded relationships that exist between our customers and other EOH business units will remain as is and the EOH Infrastructure Services business is positioned to benefit from the transaction as we leverage the Seacom connectivity expertise.”
Fortuin adds: “We are looking to the future and to creating end-to-end ICT solutions for enterprises. We aim to create a complete ICT offering that combines hosting, security, and network connectivity and is scalable enough to expand as our clients’ requirements change. This will be packaged by a high-touch team that offers each client a personal and tailored experience. Managed services form an important part of that goal, and with EOH-NS by our side, we are reaching for it.”