Internet Solutions to buy MWEB Business
Internet Solutions, a division of Dimension Data, has announced that it has signed a transaction agreement to purchase three business divisions within MWEB Connect.
The sale includes the assets of the following businesses:
- MWEB ISP core network assets;
- MWEB Business;
- Optinet.
MWEB Connect will retain its consumer ISP business. The MWEB WiFi business does not form part of this agreement.
A fee for the deal was not disclosed.
The transaction, subject to Competition Tribunal (South Africa) approval, will see the transfer of the network assets and bandwidth contracts of MWEB Connect to Internet Solutions, a division of Dimension Data.
The transaction also includes the acquisition of Optinet and MWEB Business, both of which will also be managed by Internet Solutions.
MWEB Business, Optinet and MWEB Connect engineering and support employees will transfer with the transaction to Internet Solutions.
“MWEB Business and Internet Solutions will be able to service this market segment more competitively and ensure that the ICT offerings for this sector are designed and supported in a way that is economically viable and, importantly, support them in operating and growing their business,” said Derek Wilcocks, CEO, Dimension Data Middle East and Africa.
“There is a strong strategic and cultural fit between MWEB Business and Internet Solutions and the combined entities will have the scale to compete in the SME market, whilst the SME market will benefit from access to a wider range of services, more market competitive prices, and greater support for their ICT.”
MWEB Connect was founded in 1997 and is an unlisted entity. MWEB’s Optinet will continue to provide services to Naspers group companies.
MWEB Business is focused on the small and medium enterprise (SME) market in South Africa and has 5000 clients across a range of vertical market segments.
Internet Solutions, founded in 1993, is a division of Dimension Data and provides ICT services to the corporate, SME, public sector and wholesale markets. Dimension Data is a member of the NTT Group.
Last month MyBroadband reported that MWEB was in discussions with Dimension Data regarding the potential sale of three of its divisions.
According to the information received, the deal also involved Naspers potentially entering into an infrastructure outsource agreement with Dimension Data.
More on Dimension Data
Dimension Data in talks to buy MWEB Business: sources
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