Internet Solutions for sale – Sources

Industry sources have told MyBroadband that Dimension Data has gone to market to find a buyer for Internet Solutions.

Internet Solutions is owned by Dimension Data, which is owned by Japan’s Nippon Telegraph and Telephone Corporation (NTT).

Internet Solutions has operations in multiple African countries, with South Africa its strongest revenue base.

The company has a solid presence in the corporate market, and provides services to 80% of the companies listed on the JSE.

In recent years, Internet Solutions strengthened its presence in the consumer and SMME market through its acquisition of MWEB Business and MWEB Connect.

Toward the end of 2016, the company also underwent a “rationalisation process across all business units” – which included a reduction in staff.

This created a more streamlined company, which increased its attractiveness to buyers.

Valuable asset

Internet Solutions is therefore a valuable asset to larger telecoms operators which are looking to grow their market share in the ISP space.

Industry sources said that several prominent local telecoms companies have been in discussions with Dimension Data regarding the sale of Internet Solutions.

They highlighted that this is not the first time the company has come onto the market, however, and that a sale is not guaranteed.

The news follows a report that NTT is looking to sell Dimension Data’s African operations, which may then be listed as a separate company on the London Stock Exchange.

According to Bloomberg, one scenario would be that MTN buys Internet Solutions to strengthen its position in the corporate market.

Dimension Data declined to provide comment to MyBroadband on the matter, stating it “does not respond to market rumours”.

Now read: Dimension Data dismisses African operations sale speculation

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Internet Solutions for sale – Sources