MTN SA, the country's second-largest cellular provider, has bought 50% and one share in Internet service provider Afrihost, it said in a statement released today.
The cellular operator says the deal will add scale to MTN South Africa's online ICT service offering, which is focused on the consumer and small and medium enterprise (SME) market.
MTN notes its offer is aligned with its strategy of optimising its operating model as it has been seeking ways of pulling costs out of its base.
This is the latest move towards consolidation in the ICT sector after Vodacom bid R7 billion for Neotel, and Telkom offered R2.67 billion for Business Connexion.
"MTN South Africa expects to leverage off Afrihost's strong customer service, value proposition and agility, thereby boosting MTN South Africa's presence in the SME, corporate/consumer and connected home segments," says MTN in the statement.
The operator adds it will also be able to supply Afrihost with products for its existing customer base. The deal with Brendan Armstrong, Angus MacRobert, Peter Meintjes, Greg Payne, Frank Payne and Gian Visser, and their family trusts and investment company was inked on Friday, it says.
Afrihost has been around for 13 years and has more than 100 000 customers, according to its Web site. It initially "joined forces" with MTN in 2012 so its clients could enjoy the benefits of MTN's scale and "investment in innovation".
The agreement is subject to various regulatory approvals.
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