The DataPro Group has added another Internet service provider (ISP) business to its @lantic Internet portfolio, with the acquisition of Cape-based Xsinet.
The value of the acquisition was not disclosed. However, @lantic says the purchase has boosted its user numbers by a third, increased its earnings and provided a foothold in the Western Cape market.
The addition of Xsinet's 15 000 customers to @lantic's ongoing organic growth initiatives boosts the company's subscriber numbers to 60 000. While organic growth, through 195 franchises and resellers countrywide, has been at the heart of its drive for market share, @lantic says acquisitions will play an increasing part in its growth strategy.
The company has also recently finalised the purchase of two Bloemfontein-based ISPs, MJVNet and Shisas.
Cape entry
@lantic MD Neil Meyer says the company's main motivation for acquiring Xsinet was to enter the Cape market.
While @lantic's traditional strength has been Gauteng consumers and SMEs, the addition of Xsinet complements its "local service, national support ethos", says Meyer.
"Xsinet's consumer focus is very much in line with our own customer base, which is 70% composed of consumers and 30% of small businesses," adds @lantic channel director Jacques Visser.
David le Roux, outgoing MD of Xsinet, agrees the businesses are a good match. The transaction also adds impetus to continuing consolidation in the competitive ISP market, as smaller players struggle to make ends meet.
Le Roux says he doesn't believe ISPs with fewer than 20 000 subscribers can compete on an equal footing with the rest of the industry.
Although hardware was part of the deal, Meyer says @lantic has, for some time, been ramping up its service platform to accommodate acquisitions.
Xsinet customers who indicate they wish to continue with existing services will keep their Xsinet e-mail aliases and products. In cases where they are upgraded, their products and e-mail aliases will carry @lantic branding. The Xsinet company name will be discontinued.
Hungry for more
Meyer notes more announcements may follow in coming weeks.
"We aim to double our customer base this year and we have the capacity to chase more acquisitions," he explains.
DataPro Group executive chairman Tony van Marken agrees: "It is our stated intention to grow through organic and acquisitive growth, and during this year we have strengthened our balance sheet with a view to completing additional acquisitions.
"The @lantic management team has proved itself within DataPro Group, and is able to acquire and integrate ISPs into the @lantic structure in a cost-effective and timely manner. Xsinet is the largest acquisition to date for @lantic, and will be accretive to earnings."
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