Firstly, it combines two well-respected aspirant alternative telco operators, although Vox is further down the line than Storm in terms of sheer scale. But, putting them together gives both a leg up towards that goal. <\/p>\n
The deal also brings bright people together. Storm CEO Willem van Rensburg joined from Business Connexion and is highly respected in his field. He's a good addition to the Vox team. <\/p>\n
But, one thing that leaves a slightly bitter taste about the deal is that the news was not a secret to the market. Despite Finweek hearing speculation of the acquisition at least a week before its announcement on Sens, and ITWeb pipping us to the post in reporting this, the news was not made public until days later. <\/p>\n
Perhaps the discussions had been held, but the final details had not yet been agreed upon? <\/p>\n
Chairman Tony van Marken said the company had not been in a position to announce the deal yet, because no agreement had been signed. It had feared the story could have jeopardised the deal. <\/p>\n
Van Rensburg had told Finweek days after the ITWeb article a similar thing before the deal was announced; that he could not comment, save to say that no agreement had been signed between the two companies. He did not, however, deny that the parties had been talking. <\/p>\n
However, there is currently a lot of consolidation happening in this market, so it is understood that many companies have been talking to each other to explore the possibilities. <\/p>\n
Interestingly though, the valuation that had been rumoured that Vox would pay for Storm was very close to the price that it will pay; R360m compared to the R350m that had been suggested. So the leak was, at least, a good one. And the deal was done regardless. <\/p>\n
Vox had been trading under cautionary since 16 August.<\/p>\n