JSE-listed electronics and electrical engineering company, Reunert, says it will acquire wireless broadband service provider, SkyWire Technologies.
SkyWire predominantly serves business customers and boasts an extensive national network. The acquisition will strengthen Reunert’s focus on building its portfolio of earlier life cycle businesses in growth markets, the group said.
SkyWire will form part of Reunert’s ICT segment, which includes Nashua and ECN.
“This acquisition complements the ICT segment’s expansion strategy to increase its traditional suite of products and services to include broadband connectivity,” Reunert said in a statement on Monday.
“Adding SkyWire to the communications cluster of the business provides an excellent overlap with Nashua and ECN’s distribution network of 37 franchises and 320 dealers. By leveraging the strong Nashua and ECN brands and market positions, SkyWire will have a wider network for allowing the rapid deployment of high-quality broadband connections.”
Alan Dickson, CEO of Reunert, said that the acquisition will enable Reunert to enter the fixed wireless broadband market as a “significant player”.
“Our access to additional customers and distribution will allow SkyWire to add further scale to its business. SkyWire also has expansion plans underway into other African territories,” he said.
“Reunert will assist with these ambitions, ultimately contributing towards growing our revenue base outside of South Africa.”
The SkyWire business, brand and channel will remain as an independent business unit within the Communications Cluster of Reunert’s ICT Segment.
The transaction is subject to final conditions precedent and the necessary regulatory approvals. Reunert aims to have the transaction concluded by the end of February 2018, with the business operating as a full subsidiary.