South African wireless operator Vodacom has agreed to purchase the carrier services and business network units of African network and satellite services firm Gateway for USD700 million, including approximately USD100 million in debt and USD25 million to discharge Gateway’s high-yield bonds. The transaction is expected to be completed by the end of this year and will give Vodacom access to1.5GHz of satellite bandwidth on the continent, as well as Gateway’s terrestrial network.
A spokesperson said the deal would help Vodacom reposition itself as a provider of converged communication services. Gateway is Africa’s largest independent provider of interconnection services via satellite and terrestrial network infrastructure. It provides end-to-end connectivity services to African and multinational companies across 40 countries. Vodacom, owned by the UK’s Vodafone and South Africa’s Telkom, runs networks in South Africa, Tanzania, the Democratic Republic of Congo, Lesotho and Mozambique.