Reunert, the JSE-listed electronics and electrical engineering company, will acquire wireless broadband service provider SkyWire Technologies, it revealed on Monday. The value of the deal has not been disclosed.
SkyWire mainly serves business customers and has an extensive national network. It will form part of Reunert’s ICT segment, which includes Nashua and ECN.
“The acquisition strengthens Reunert’s focus on building its portfolio of earlier life cycle businesses in growth markets,” the group said in a statement.
“This acquisition complements the ICT segment’s expansion strategy to increase its traditional suite of products and services to include broadband connectivity,” it added.
SkyWire founders Mondi Hattingh and Jaco Visagie will stay in the business.
“SkyWire is a successful broadband provider that has displayed impressive growth over the past number of years. Its existing customer base and products will allow Reunert to enter the fixed-wireless broadband market as a significant player,” said Reunert CEO Alan Dickson.
“Our access to additional customers and distribution will allow SkyWire to add further scale to its business. SkyWire also has expansion plans under way into other African territories. Reunert will assist with these ambitions, ultimately contributing towards growing our revenue base outside of South Africa.”
Through Nashua and ECN, SkyWire will have a wider network for the rapid deployment of broadband connections, Reunert said.
Listed entity
“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 Hattingh in the Reunert statement.
SkyWire 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.
SkyWire was founded about 12 years ago. In 2015, in an interview with TechCentral, Hattingh said SkyWire had already at that time received a number of approaches from potential buyers.
A close relationship with Telkom Wholesale allowed the business to grow in the early days. It secured access to key infrastructure through this relationship.
It realised there was a big market in outlying areas, and provides solutions to mines and other businesses in remote areas.
SkyWire later expanded into providing voice services, with interconnection agreements with major operators in place.
It has typically used unlicensed spectrum to provide last-mile services to businesses, but has in the past indicated a desire to bid for licensed spectrum should it become available. — (c) 2018 NewsCentral Media
