Vodacom buys Gateway
Vodacom has agreed to acquire the carrier services and business network solutions subsidiaries of Gateway Telecommunications for an enterprise value of approximately US$675 million plus a makewhole payment of approximately US$25 million in relation to Gateway’s high-yield bond.
Gateway Communications has customers in over 40 African countries and offices in 17 of these countries. According to the company website their African network connects over 583 million people across the continent.
As a pan African provider of communications infrastructure and services Gateway Communications gives Vodacom an easy entrance into markets which it previously may not have had a strong foothold in.
This move sends a strong signal to the market that Vodacom is expanding its African operations and is looking to extend its reach both horizontally – in terms of more service offerings – and vertically through penetrating new markets.
Commenting on the transaction, Pieter Uys, Chief Executive Officer designate of Vodacom Group, said: “The acquisition of Gateway reflects Vodacom’s strategy to reposition itself as a leading pan-African provider of communications services and to diversify from its current status as primarily a mobile-centric network operator. We believe that Gateway’s significant presence across Africa will allow Vodacom to tap into the huge potential for growth in business services and connectivity and will enhance our position with multinational corporations.”
Peter Gbedemah, Chief Executive Officer of Gateway added: “This is an exciting milestone in Gateway’s development as a unique pan-African service provider. We will increase resources, efficiency, and product range and continue our relentless focus on meeting the requirements of all Africa’s mobile networks and multi-national corporations.”
Vodacom Gateway acquisition discussion
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