Internet Solutions, the wholly owned division of Dimension Data (Middle East & Africa), has signed a transaction agreement with South African internet service provider (ISP) MWEB to purchase its core network assets division MWEB Connect, in addition to the MWEB Business and Optinet units, for an undisclosed sum. MWEB, however, will retain its consumer ISP business and MWEB Wi-Fi assets. The transaction, which is subject to approval from the Competition Tribunal (South Africa), will involve the transfer of MWEB’s network assets and bandwidth contracts to Internet Solutions.
Dimensions Data CEO Derek Wilcocks said: ‘MWEB Business and Internet Solutions will be able to service this market segment more competitively and ensure that the ICT offerings for the sector are designed and supported in a way that is economically viable and, importantly, support them in operating and growing their business. There is a strong strategic and cultural fit between MWEB Business and Internet Solutions and the combined entities will have the scale to compete in the SME market, whilst the SMEs will benefit from access to a wider range of services, competitive prices, and greater support for their ICT.’
Meanwhile, in a separate announcement Dimension Data has revealed that it will also establish a new company, WirelessCo, to build and operate an open access carrier-grade Wi-Fi network. The new business entity will be 51% owned by Dimension Data, while South African pay-TV provider MultiChoice will retain a 49% stake. WirelessCo will combine the Wi-Fi network assets of Dimension Data-owned Wi-Fi provider AlwaysOn, together with the assets of MWEB Wi-Fi; the AlwaysOn retail consumer business will continue to operate as a separate entity. The deal is subject to approval from South Africa’s Competition Commission (CompCom).