Pan-African telecommunications provider SEACOM has received approval from South Africa’s Competition Commission to buy EOH Network Solutions (EOH-NS) and Hymax, divisions of iOCO and part of EOH.
The Commission’s approval gives SEACOM the green light to proceed with its current integration plans, with 1 September 2022 earmarked as the first day of operations under the SEACOM banner.
“Following a brief and satisfactory application process, we are happy with the Commission’s decision and are looking forward to the next stage of this process,” said Joe Vipond, SEACOM Group Business Development Officer responsible for mergers and acquisitions.
SEACOM first announced its plans to acquire EOH-NS and Hymax in April 2022.
Founded in 2003 and acquired by EOH in 2010, EOH-NS is one of South Africa’s leading ICT service providers, specialising in the deployment of managed service networks and offering a wide range of cloud, security, and networking components.
The Competition Commission approved the acquisition with no conditions and agreed with SEACOM and EOH-NS’s view that their consolidation would benefit their employees and customers. Considering the combined market share of the merged entity, the Commission concluded that there was no significant market share that could result in anti-competitive behaviour.
“What sits at the heart of this consolidation is people—partnering with organisations that offer different skill sets while continuing to offer essential and quality services to new and existing customers is central to what we want to achieve in the long term. Our clients and staff are all set to benefit from a combined, comprehensive service offering and shared values that take enterprise Internet solutions in Africa to the next level,” Vipond explained.
“The next step is to finalise an organisational structure that makes the most of the acquisition, as well as helps to unlock SEACOM’s ambitious growth strategy for South Africa and beyond,” Vipond concluded.
Oliver Fortuin, Chief Executive Officer at SEACOM, is looking forward to what the future holds based on the acquisition.
“The synergies that were identified between the two companies were just too great to ignore. SEACOM has a heritage of bringing the Internet to South and East Africa and holds a strong position in the wholesale market as the ‘provider of providers’. We are relatively new in the enterprise space. Still, we have made great inroads in connecting some of South Africa’s top enterprise organisations through our dedication to providing network stability and reliability. EOH-NS and Hymax bring additional enterprise capabilities and managed services components that expand our on-net capabilities and reach, enhancing our ability to provide customers with comprehensive enterprise-grade ICT solutions and quality connectivity. This is a winning combination that allows SEACOM to expand and continue to grow our enterprise services business across the continent.”
As mentioned in a previous announcement around this deal, the proceeds from the sale, net of costs, will primarily be applied to reduce EOH debt further.
Said Stephen van Coller, EOH Group CEO, “We are extremely pleased that the Competition Commission has approved this deal with no conditions. The conclusion of this deal enables the EOH Group to continue on its journey of creating a fit-for-purpose capital structure. We are also excited for the many prospects that EOH-NS and Hymax can target as part of the SEACOM Group.”
EOH will continue its business engagements with SEACOM and looks forward to unlocking opportunities for future collaboration. Existing customers will also not be impacted by this transition. EOH anticipates a positive outcome from this deal for its staff and customers, whereby EOH will continue to provide connectivity solutions and enhanced offerings with the backing of SEACOM, a recognised global brand.