Private equity company buys three South African fibre networks

The Competition Commission has approved the deal for Infinite Partners’ Core Equity Fund and Co-Investment firms to acquire Evotel, Link Layer, Magnolia Tree, and Net99, without conditions.

Infinite Partners has interests in various industries, including software development, fintech, the industrial sector, technology and communications, information and communication technology, clothing, and automotive parts.

Evotel, Link Layer, and Magnolia Tree are fibre network operators. Net99 is an Internet service provider.

“The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. The proposed transaction does not raise significant public interest concern,” the Competition Commission said.

Established in 2022, Infinite Partners has invested in companies like AutoZone, Twinsaver, and Barron. It also manages investments in MTN Zakhele Futhi and Ethos Mid-Market Fund I.

It has also invested in Echo Service Provider, an independent, vendor and carrier–neutral network traffic aggregator.

The acquisition of companies like Evotel and Link Layer will enable Infinite Partners to enter the open access fibre network space in South Africa.

Link Layer is a fibre network operator (FNO) that focuses primarily on the KwaZulu-Natal North Coast, servicing areas including Westbrook, Shaka’s Rock, Salt Rock, Ballito, Sheffield Beach, and Umhlali.

It installs and operates open-access fibre networks, meaning any accredited Internet service provider (ISP) can sell its packages to their customers.

Link Layer partners with AEX to manage and supply its open-access network. It sells asymmetrical fibre packages with speeds ranging from 10Mbps to 1Gbps.

Established by Albert Oosthuysen in 2015, Evotel is an FNO with coverage in towns and cities in the central and northern parts of South Africa, including Welkom, Krugersdorp, and Rustenberg.

It also operates on an open-access basis, which it says allows customers to purchase its uncapped fibre-to-the-home packages from their choice of 48 ISPs.

Evotel’s fibre-to-the-home package speeds range from 10Mbps to 850Mbps.

Oosthuysen is also CEO of Net99.

Magnolia Tree is a closed access fibre network operator that also partners with AEX.

AEX is owned by Myriad Capital, which had invested in Evotel, Link Layer, and Net99.

Evotel and Link Layer compete with some of the biggest operators in South Africa’s fibre space, including Vumatel, Openserve, Frogfoot, and Metrofibre.