Seacom in talks to acquire FibreCo: report

SEACOM is reportedly in advanced discussions to acquire FibreCo, according to MyBroadband, citing sources close to the matter.

FibreCo owns a national open access network and provides telecoms services to enterprises, the government, and carrier clients. Its 4,000km fibre network consists of underground fibre routes and carrier-grade equipment hosting facilities interconnecting over 59 points of presence in South Africa.

The company’s points of presence include major data centres in Johannesburg, Cape Town, Bloemfontein, Durban, Port Elizabeth, and East London.

SEACOM, in turn, is known for launching Africa’s first broadband submarine cable system along the eastern and southern coastlines in 2009.

Since then the company has moved beyond being a cable operator to become a major pan-African service provider, offering a full suite of data services.

Acquisition strategy

The company has also launched an enterprise division, which provides the business market with connectivity and cloud services at competitive prices.

To further grow its telecoms offerings, SEACOM has an aggressive acquisition strategy which focuses on urban areas in South Africa and Kenya.

SEACOM CEO Byron Clatterbuck said in June 2018 that they were evaluating several acquisitions.

MyBroadband has now learned that SEACOM is in discussions to acquire FibreCo, which will provide it with a long-distance fibre network in South Africa.

This will complement SEACOM’s existing submarine cable network and its growing metropolitan fibre network.

Sources told MyBroadband that FibreCo has accepted an offer from SEACOM, but that discussions regarding the acquisition are ongoing.

It is understood that regulatory approvals are also necessary for an acquisition of this size.

Read: Seacom upgrades its subsea cable system to 1.5Tbps

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Seacom in talks to acquire FibreCo: report