Seacom will soon be expanding into small towns or cities across South Africa thanks to the acquisition of FibreCo and it will be buying more companies in order to scale up its business.
This was revealed by Grant Parker, general manager of Seacom Business, in an interview with TechFinancials.
“We are actively looking to expand our business,” he said.
“There is a couple of acquisitions we are looking at right now, watch the space. There’s the talk of bigger things.”
He wouldn’t be drawn into providing more information, except to say “I can’t talk about it at this time, but really exciting times”.
“We want to make sure that we get anchor tenants in the right smaller cities or towns.”
Seacom, which provides connectivity to enterprises, will make more acquisitions to beef up its business.
The Johannesburg-based company is finalizing the acquisition of 100% of national fibre operator FibreCo Telecommunications. The deal is awaiting regulatory approval by the country’s competition watchdog.
The acquisition gives Seacom Business a national footprint.
FibreCo connects over 60 points of presence across South Africa, including data centres in Bloemfontein, Cape Town, Durban, East London, Johannesburg, and Port Elizabeth.
FibreCo’s network also connects the SEACOM subsea cable system (which lands in Mtunzini on the east coast of South Africa) to the WACS cable (which lands at Yzerfontein, on the west coast of South Africa), enabling fully redundant high-speed ring protection for diversity around the African continent.
Targets expansion into smaller cities and towns
Acquired companies such as FibreCo, SAI, MacroLan, Photon, and others will be rebranded into Seacom and thereafter the company will expand into smaller cities and towns across the country.
“We are looking at expanding into 5-8 smaller cities and towns initially. We haven’t got the official names of the towns or cities yet that we will be expanding into. I think going to those markets is important,” said Parker, adding that the company will utilize its partner network to grow its business in smaller towns or cities.
Parker added that the acquisition of FibreCo enables Seacom to deliver high-speed Internet connectivity and cloud products into smaller cities and towns across the country, which have typically been under-serviced.
FibreCo’s network also connects to the Seacom subsea cable system, which connects South Africa to the east coast of Africa, India, and Europe.
Seacom – a Pan-African telecommunications company, and subsea fibre cable operator – first started offering access to large service providers on its subsea cable in 2009.
Seacom says it has grown to almost 5 000 customers as it includes the new buys.
Seacom Business was created to go directly after enterprise (both private and public sector) customers as well as create a reseller or agent side of the business.
The company wants to ensure that it delivers a great service to its customers moving forward.
“I think we can deliver a relevant customer experience because we are small and agile enough and are digitalizing enough right now to make a difference to customer experience,” said Parker.
Seacom Business is becoming a growth engine for Seacom and has enabled the business to derisk and seek new revenue opportunities.
Asked how he is planning to keep Seacom Business as a growth engine for Seacom, Parker said: “It’s going to be acquisitive growth in many fronts, maybe look at some mergers even. There are some interesting things that could happen there. We want to make sure that we focus on having the right customers and giving them the right experience.”