CAPE TOWN - JSE-listed electronics and electrical engineering company, Reunert, announced its intention to acquire a wireless broadband service provider SkyWire Technologies.
The acquisition strengthens Reunert’s focus on building its portfolio of earlier life cycle businesses in growth markets.
SkyWire will form part of Reunert’s ICT segment, which includes Nashua and ECN.
This acquisition complements the ICT segment’s expansion strategy to increase its traditional suite of products and services to include broadband connectivity.
The segment currently delivers solutions to over 40,000 existing B2B customers.
“SkyWire is a successful broadband provider that has displayed impressive growth over the past number of years. Their existing customer base and products will allow Reunert to enter the fixed wireless broadband market as a significant player,” says Alan Dickson, CEO of Reunert.
“Our access to additional customers and distribution will allow SkyWire to add further scale to its business. SkyWire also has expansion plans underway into other African territories. Reunert will assist with these ambitions, ultimately contributing towards growing our revenue base outside of South Africa”, adds Dickson.
SkyWire founding members, Mondi Hattingh and Jaco Visagie, will stay in the business.
“The entire SkyWire team is very excited by the opportunities this deal brings to our business”, says Hattingh who is equally enthusiastic about the transaction. “Our services will immediately gain the benefit of one of the most successful ICT sales channels in the country and the company will become part of a major South African listed entity, which brings all the stability and skills a fast-growing business like ours requires at this stage of our life cycle”, said Dickson.
The SkyWire business, brand and channel will remain as an independent business unit within the Communications Cluster of Reunert’s ICT Segment.
The transaction is subject to final conditions precedent and the necessary regulatory approvals.
Reunert aims to have the transaction concluded by the end of February 2018, with the business operating as a full subsidiary.
- BUSINESS REPORT ONLINE