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Esquire buys into ISP

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 13 Mar 2012

IT components and PC hardware distributor Esquire Technologies has bought a 50% stake in Internet solutions provider SA Gateway for an undisclosed amount.

The deal, which came into effect at the beginning of this month, saw SA Gateway staff retain a 50% shareholding.

Esquire MD Asgar Mahomed says the purchase is in line with the company's ongoing Internet strategy. It also aims to offer its 12 000 active resellers “very competitive” rates for Internet-based communications. Esquire sells gaming and networking technology.

Esquire recently launched a virtual reseller network (VRN) that allows its partners almost real-time access to its stock levels and product listings. The company said in November it had spent about R8 million on the system and is gradually bringing its resellers online.

Mahomed explains the deal is part of the company's plans to grow its VRN. The acquisition of a stake in SA Gateway allows the company to offer wholesale rates to its clients, including its 12 000 active resellers, he adds.

“SA Gateway is now able to leverage off Esquire's 12 000 reseller base which will make the company a major player in the ISP market space - and will enable Esquire to gain a strategic edge by being able to streamline communications costs for its resellers.”

Dieter Febel, who held a management position at SA Gateway before the purchase by Esquire Technologies, has been appointed as SA Gateway's GM.

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