2023-07-05 15:04:00
(Ecofin Agency) – Competition continues to strengthen in the South African Internet market, in a context of accelerated digital transformation. Several players in the sector are consolidating to better face this competition.
South African ISP Afrihost can now complete the acquisition of rival CipherWave Home-Connect (Home-Connect) from CipherWave Networks. The transaction was cleared by the Competition Commission of South Africa (CompCom) on Monday July 3.
The Commission approved the transaction, as it considered “that the proposed transaction was unlikely to prevent or lessen competition substantially in any of the relevant markets“. She also claimed that the proposed transaction did not raise any “important public interest issues ».
It was last May that Afrihost reached an agreement with CipherWave Networks to acquire a majority stake in the capital of Home-Connect for an undisclosed amount. The two parties did not disclose the exact stake that Afrihost will hold in Home-Connect following the transaction. However, they specified that Home Connect will continue to operate autonomously.
This deal comes two years following Afrihost acquired a majority stake in Cool Ideas for an undisclosed amount. The company also owns a majority stake in Axxess, another of South Africa’s leading internet service and hosting providers.
These investments are part of Afrihost’s desire to strengthen its position in the South African Internet market characterized by growing demand for high-speed connectivity and strong competition. In the optical fiber segment, we are witnessing a consolidation of players. In May 2022, Community Investment Ventures Holdings (CIVH) merged its Vumatel and DFA subsidiaries into a fiber optic mega-company now known as Maziv.
« Through this transaction, Home-Connect and Afrihost hope to leverage the economies of scale of a larger network to continue providing super-fast, truly uncapped internet service at affordable prices.s,” CipherWave Networks asserted.
Isaac K. Kassouwi
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03/10/2022 — South Africa: the new parent company of Vumatel and DFA will be known as Maziv
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