A deal that may see iBurst and Broadlink parent company Wireless Business Solutions (WBS) being acquired by ICT company Multisource has been concluded. It now awaits the green light from the Independent Communications Authority of SA (ICASA) and the Competition Commission.
This comes amid a flurry of merger and acquisition activity in the ICT space. It is a move, analysts say, which could pave the way for a stronger player in the market, at a time when consolidation is creating an ecosystem of fewer large Internet service providers (ISPs), rather than a bunch of smaller ones.
News that Multisource was looking to buy WBS emerged in October last year, after many months of buyout rumours without confirmation.
Former First National Bank CEO Michael Jordaan's investment vehicle Montegray Capital holds about 16% of Multisource. Other shareholders include Paul Harris, founder of First Rand Group; technologist and entrepreneur Brandon Leigh; and Multisource chairman Phumlani Moholi, former technology chief at MTN and the man behind delivering the technology for the 2010 Fifa World Cup as chief IT&T officer for the games.
Moholi and Jordaan confirmed the deal was on the table last year, but at the time said details surrounding it were strictly confidential.
Analysts say there are clear benefits to be gained from a purchase of WBS, which has spectrum in the 1 800MHz and 2.6GHz bands.
Multisource, which describes itself as a "next wave networks" company, acquired IP network company Neology in October 2013, which may suggest it is setting itself up as a virtual network enabler.
However, specifics around the Multisource/WBS deal are still under wraps, with details expected to emerge in the coming weeks.
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