Esquire Technologies has acquired a 50% stake in ISP, SA Gateway, for an undisclosed amount.
The deal sees the management staff of SA Gateway retaining a 50% shareholding, with Esquire owning the remaining 50%.
MD of Esquire Technologies, Asgar Mahomed, said the purchase is in-line with the company’s ongoing Internet strategy – to be in a position to offer its 12,000 active resellers “very competitive” rates for ‘’Internet-based communications”.
He said that through the purchase of SA Gateway, the group can effectively offer wholesale rates to its clients.
Mahomed noted that the purchase also forms part of its strategy to grow its Virtual Reseller Network (VRN). The VRN will ultimately link its 12,000 resellers:
“The VRN solution has effectively turned participating resellers into multi-millionaires overnight as the resellers will have virtual access to the entire Esquire stock holding, which is updated directly to the reseller’s web-site at regular intervals – often as frequently as every three minutes.
“The software solution, run by e-commerce specialist ImproWEB – with whom we have an exclusive agreement – takes our stockholding and replicates it on the web-sites of participating resellers, thereby giving them virtual access to our entire stockholding.”
Mahomed confirmed that Esquire Technologies has, to date, spent R8 million on development costs for its VRN solution.
Dieter Febel, who held a management position at SA Gateway before the purchase by Esquire Technologies, has been appointed as SA Gateway’s general manager.