ICT conglomerate group AccessKenya is still awaiting approval from the Kenyan Monopolies Commission to take over rival Internet service provider (ISP) Today's Online.
The group acquired the broadband leased-line customer base of Today's Online earlier this month.
The value of the transaction was not disclosed, but consisted of an up-front payment and a future payment based on the successful migration of the customer base to AccessKenya's network.
Jonathan Somen, MD of AccessKenya, explains the Kenyan Monopolies Act is "very tight", causing the company to formally await takeover consent from the Monopolies Commission.
After approval, the group will begin migrating Today's Online subscriber base to AccessKenya, explains Somen. "Through this acquisition we are essentially adding to our subscriber base."
AccessKenya will gain up to 100 Today's Online subscribers.
Today's Online will work with AccessKenya to migrate it customer base smoothly as part of the transaction agreement. Today's Online will continue to sell Internet services for AccessKenya for at least the next nine months as an agent.
Milton Njanja, MD of Today's Online, says in a company press release that AccessKenya will better serve the transfer of connections because of the 99.8% service level agreement the company has with subscribers.
The acquisition marks part of AccessKenya's expansion plan post-IPO, says Somen. "We always said the money raised by the IPO would be channelled back into the group through acquisitions, mergers and service support."
The group was listed on the Nairobi Stock Exchange on 4 June.
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