South Africa’s Echo Service Provider has reached a deal to merge with the Internet service provider operations of Gondwana International Networks (GIN) in markets across Africa. Terms of the deal have not been disclosed.

The combined entity will operate in nine markets with its own networks, and will leverage the pan-regional reach of its more than 35 partner networks across the continent.

GIN is a pan-African service provider with interests in the telecommunications and broader ICT sectors. Its ISP roots can be traced back over 20 years to Africa’s first ISPs through its operating brands iWayAfrica and AfricaOnline (which were at one time owned by Telkom). It employs 300 people in 19 offices.

GIN is the majority shareholder in subsidiary operations in seven countries, namely Kenya, Uganda, Tanzania, Zambia, Ghana, South Africa and Mauritius, and has a 49% ownership interest in both Zimbabwe and Namibia. It serves clients in the consumer, small and medium enterprise, and corporate segments using fibre, wireless and satellite.

Echo, which was founded in 2010, hosts its core infrastructure in various Teraco data centres, providing “vendor-neutral services and aggregated connectivity across a wide range of carrier networks, cloud computing, content hosting, network security solutions and a full portfolio of managed services”.

In February 2018, Ethos Mid-Market Fund acquired a significant stake in Echo South Africa to gain exposure to the ICT market in Africa.

“This transaction (with GIN) has taken almost a year to conclude,” said Echo director and shareholder Angus MacRobert, who is a former CEO of Dimension Data’s Internet Solutions and an active investor in ICT businesses. “We are really excited about the opportunities this deal creates in adding additional value to Echo’s existing client base while growing our business through exposure to exciting domestic markets in Africa.”

‘Expanded footprint’

Echo International CEO Jacques Rautenbach said: “The expanded geographic footprint means that our clients operating on the continent have the reassurance of our ability to execute and support their businesses on the ground across Africa. Additionally, we can provide commercial agreements that consider local currencies along with centralised planning, governance and service management. We can also leverage Echo’s product investments, group skills and consultative approach to design, which means clients in each country will have a much wider portfolio of services to choose from.”

GIN CEO Mathew Welthagen said the merger with Echo is a “natural fit with GIN given our complementary markets and service offerings”.

“The timing is also aligned with GIN’s expansion phase of the business. Ethos has the financial strength to allow us to continue to invest in our business and strengthen our service offering to clients. The depth of skill, industry knowledge and telecoms experience within Echo will allow us to innovate and further advance our value proposition.”