Following its recent announcement of plans to enter the ISP space, Business Connexion (BCX) has acquired Bidvest Network Solutions (Bidnet) from the Bidvest Group for an undisclosed amount.
The acquisition puts the company in a comfortable position to provide converged communication services, according to Willem van Rensburg, BCX group executive for strategy. He says the deal, which has to receive approval from the Competition Commission, introduces a new revenue stream to the company.
"The deal will enable Business Connexion to operate as a value added network service provider, offering a converged data and voice solution to its outsourced client base, where more than 70% of its revenue is derived from," he says.
The acquisition has given the company a foothold in the R70 billion-a-year telecommunications industry, complementing its status in the R40 billion-a-year IT market, says Peter Watt, BCX CEO.
"BCX now has the infrastructure to enter this new market," Watt adds. "We are in a position to fulfil client demands and deliver a complete ICT solution without having to rely on third parties, as we already own value added network licences."
This factor, van Rensburg says, will in the near future result in cost savings for both the company and its clientele. He mentions that as part of the acquisition agreement, BCX will be providing networking services to the Bidvest group.
"Business Connexion will now have the foundation for a next generation network which enables us to guarantee network performance. It also enables us to add cost effective voice, data, video and broadcasting services to our existing integrated offering," adds Watt.
Bidnet, formerly known as I-Fusion, has a fully functional multi protocol label switching virtual private network capability providing data and voice over IP services..
All Bidnet`s employees will be absorbed into the new BCX and the company does not foresee any staff rationalisation.
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