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South Africa’s Competition Commission, has approved pan-African telecommunications provider SEACOM Group’s acquisition of EOH Network Solutions (EOH-NS) and Hymax, divisions of iOCO, the information and communications technology (ICT) division of EOH Group.
According to a statement, 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.
“We are extremely pleased that the Competition Commission has approved this deal with no conditions,” said Stephen van Coller, EOH Group Chief Executive Officer. “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.”
Over the past two years, EOH embarked on a targeted disposals strategy which included assets that are capital intensive. The proceeds from the sale, net of costs, will primarily be applied to reduce EOH debt further, the company said.
“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, with an ‘Intention to Purchase’ agreement signed between the companies and sent to the Competition Commission for approval.
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.
“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. We are relatively new in the enterprise space. 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.”
EOH said it 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.
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