Cegeka acquires majority stake in Citymesh to target B2B 5G market

11 Dec 2020

IT services provider Cegeka has acquired a majority stake in Belgian B2B wireless connectivity provider Citymesh with the aim of creating ‘the fourth national operator’ for the enterprise market. The two companies hope the strategic partnership will accelerate the expansion and deployment of new wireless services and achieve true integration of 5G in the B2B market.

The duo believes the partnership puts them in a unique position in the B2B market and offers an opportunity to develop integrated end-to-end solutions, tailored to the needs of companies. ’This partnership meets that requirement by offering real convergence between telecom and IT. In this respect, our two companies complement each other very well,’ Cegeka CEO Stijn Bijnens said in a press release, adding: ‘By joining forces, we are creating the fourth national operator or, in other words, the first real industrial operator.’ Citymesh CEO Mitch De Geest highlighted the cooperation will focus on the development of private 5G networks, particularly infrastructure virtualisation, AI tools driven by Edge, and Cloud infrastructure. ‘Cegeka is the market leader in these fields, which enables us to offer state-of-the-art 5G networks together,’ he claimed.

Citymesh has long aspired to take on the role of fourth operator, as is evident from its investments in 3.5GHz and 2.6GHz licences, its MVNO deal with Proximus and its existing solutions for offshore wind, industry and enterprise, the public sector and the entertainment market. ‘This extensive partnership will provide Citymesh with the resources it needs to strengthen its position as the fourth operator. This will be achieved both through strategic acquisitions and by accelerating the rollout of mobile private networks in different markets,’ Mitch De Geest added.

Neither of the parties will release any financial details concerning Cegeka’s stake in Citymesh. Other shareholders include the sustainable energy company Nuhma and Citymesh’s management. The current leadership, with Mitch De Geest as CEO, will continue to oversee day-to-day operational management.

Belgium, Cegeka, Citymesh