IT and Telecoms: MTN Completes Purchase Of Verizon Business SA
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MTN is pleased to announce the acquisition of Verizon Business South Africa, with effect from 28 February 2009. From 1 March 2009, Verizon Business South Africa will trade as MTN Business. This follows the unconditional approval of the transaction from the Competition Tribunal earlier this year.
Verizon Business South Africa, part of US-based Verizon Communications Inc, is an established South Africa-headquartered ISP providing full connectivity services to corporate customers in South Africa, Namibia, Botswana, Zambia and Kenya.
The acquisition of 100% of Verizon Business South Africa complements MTN’s existing investment in MTN Network Solutions and will expand the mobile operator’s ability to deliver mobile and internet-based data services to multi-national corporate clients across the continent, both existing and new.
States Tim Lowry, Managing Director of MTN SA: “This acquisition falls in line with our stated objectives of expanding our communications service offerings, particularly to corporate customers, outside of just mobile services.”
The acquisition follows on similar acquisitions made by MTN Group in Nigeria, Cameroon, Cyprus and Cote d’Ivoire.
Staff from Verizon Business South Africa will significantly bolster the skills pool of MTN in the voice and data convergence space, an area greatly affected by the existing skills shortage in South Africa. The deal will expand data and internet offerings in the aforementioned regions, to meet the company’s strategic geographic and services expansion objectives. In addition, MTN will now be able to offer existing clients the opportunity to holistically expand and upgrade their existing voice and data infrastructures.
“We believe MTN Business is optimally positioned as a full-service business communications provider of choice for the African continent,” states Lowry.
“We are now able to offer end-to-end communications solutions for our multi-national corporate clients operating across the continent. Our ultimate goal is to become the trusted communications solution partner for all our customers, and this acquisition is a significant step in the right direction.”
MTN first identified Verizon Business South Africa as a favourable acquisition due to its product mix, knowledge and delivery capability in the data arena. Verizon Business South Africa displayed a strong management ethic, together with a sound customer service track record and an innovative approach to business.
MTN Business will be in a strong position to offer customers Business Process Outsourcing, Service and Application Management, Managed Services, Network Management and Basic Connectivity. In addition to giving the individual companies the critical mass needed to expand their offerings, there are a number of planned new service offerings scheduled for delivery to customers. The roll-out of these additional converged voice and data offerings will be announced by MTN Business in the ensuing months.
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