(Ecofin Agency) – Competition in the South African internet market continues to increase against the background of accelerated digital transformation. Several players in the industry are consolidating to better face this competition.
South African ISP Afrihost can now complete the acquisition of competitor CipherWave Home-Connect (Home-Connect) from CipherWave Networks. The transaction was approved by the South African Competition Commission (CompCom) on Monday, July 3rd.
The Commission cleared the transaction as it considered that “it is unlikely that the proposed transaction would have the effect of preventing or significantly reducing competition in any of the relevant markets”. She also claimed that the proposed transaction did not raise “material public interest issues.”
Last May, Afrihost agreed with CipherWave Networks to acquire a controlling interest in Home-Connect’s capital for an undisclosed amount. The two parties did not disclose what exact stake Afrihost will hold in Home-Connect after the transaction. However, they determined that Home Connect will continue to work independently.
This deal comes two years after Afrihost acquired a majority stake in Cool Ideas for an undisclosed amount. The company also owns a majority stake in Axxess, another leading South African internet service and hosting provider.
These investments are part of Afrihost’s drive to strengthen its position in the South African internet market, which is characterized by growing demand for high-speed connections and fierce competition. In the fiber optics sector, we are witnessing a consolidation of the players. In May 2022, Community Investment Ventures Holdings (CIVH) merged its subsidiaries Vumatel and DFA into a fiber optic mega-company now known as Maziv.
“Through this transaction, Home-Connect and Afrihost hope to leverage the economies of scale of a larger network to continue offering super-fast, truly unlimited Internet services at affordable prices,” said CipherWave Networks.
Isaac K. Kassouwi
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06/21/2023 – Link Africa raises US$27 million to accelerate the rollout of its fiber optic network in South Africa
06/13/2023 – Liquid Dataport and Angola Telecom announce new fiber optic route between Angola and South Africa
03/10/2022 – South Africa: The new parent company of Vumatel and DFA will be known as Maziv