Afrihost will acquire internet service provider (ISP) Home-Connect for an undisclosed amount.
Afrihost and CipherWave Networks – the holding company for the CipherWave Group of Companies, which includes CipherWave Business and Home-Connect – have concluded a deal where Afrihost will acquire a majority stake in Home-Connect.
The acquisition is subject to regulatory approval.
The deal comes as consolidation of SA’s fibre market continues. Last year, Remgro-owned Community Investment Ventures Holdings merged its two fibre entities – Vumatel and Dark Fibre Africa – into one infrastructure company known as Maziv.
In a recent interview with ITWeb, Simon Swanepoel, CEO and founder of ISP RocketNet, said this consolidation is “inevitable” because the smaller companies will find it tough to compete.
Afrihost in 2021 bought another ISP: Cool Ideas, a provider of retail internet access services to home users, small businesses and large business.
In a statement, CipherWave says Home-Connect has been providing consumer and small business fibre internet and voice services for the past seven years across South Africa.
With coverage across 28 fibre-to-the-home networks, it notes Home-Connect has grown its base to over 50 000 customers.
Afrihost is an ISP offering broadband, fibre, fixed wireless, mobile, as well as web hosting services. It was founded in the year 2000 and has been providing services to consumers and business customers.
“As a result of the transaction, both Home-Connect and Afrihost are hoping to leverage economies of scale of a larger network in order to continue providing super-fast, truly uncapped internet service at affordable prices,” says CipherWave.
Under the deal, Home-Connect will continue operating as a standalone brand and business with the same team of management and employees.
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