Vox Telecom`s much-anticipated purchase of Storm Telecom has been confirmed.
This morning, the JSE-listed telecommunications player told shareholders it had entered a binding agreement with Storm`s shareholders to acquire its entire share capital.
The R360 million purchase price will be settled through a combination of debt and equity resources.
Last week, Vox announced its bid for Absa`s Internet service provider had been successful. The value of the deal, which saw the purchase of 68 000 individual Internet accounts, was not disclosed.
Vox executive chairman Tony van Marken says the group is pleased with its recent acquisitive success.
"We are very excited about these deals. Storm is in our strike-zone and is an excellent fit with our existing businesses, offering significant synergies once the businesses are integrated. On the other hand, the Absa deal was based on the bank`s confidence in our ability to look after their customers," he explains.
Storm CEO Willem van Rensburg was unavailable for comment this morning. However, a statement from the two companies quotes Van Rensburg as saying it is a positive development for clients.
"Storm`s customers will be able to continue benefiting from our current services. [Additionally,] they will have an advantage from the economies of scale that the larger Vox Telecom group offers," he says.
The deal is still subject to approval by the Competition Commission and other regulatory bodies, including the Reserve Bank and JSE.
The companies expect the deal to be effective as of 1 December.
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