MTN South Africa has agreed to acquire a controlling stake of 50% plus one share in local ISP Afrihost.
The Johannesburg-based telco did not disclose the deal value but said it aligns with the group’s strategy of “optimising its operating…
MTN South Africa has agreed to acquire a controlling stake of 50% plus one share in local ISP Afrihost.
The Johannesburg-based telco did not disclose the deal value but said it aligns with the group’s strategy of “optimising its operating model”.
“The Afrihost acquisition will add scale to MTN South Africa’s online ICT service offering, which is focussed on the consumer and SME market,” the company said in a statement. The two businesses will supply each other with products.
The agreement is subject to certain conditions and regulatory approvals. Existing shareholders, including management, will retain the remaining shares.
Afrihost was founded as a web hosting and internet services company in 2000 by CEO Gian Visser and friends Brendan Armstrong and Peter Meintjes, now the technical and operations directors respectively. The company entered the broadband market in 2009 with aggressive pricing plans.
MTN and Afrihost have worked together since 2012, with the telco providing the ISP with infrastructure and bandwidth for ADSL customers. Afrihost has also used MTN’s network to launch mobile data deals.
Meanwhile, MTN is reportedly considering acquisitions that would enable it to expand beyond the continent and Middle East.
