September 1, 2008
Vodacom Acquires Gateway Telecommunications for $675m
South African mobile operator Vodacom has agreed to acquire African satellite and terrestrial network services provider Gateway Telecommunications for $675m. It will also pay an additional $25m to Gateway's high-yield bond.
Gateway provides interconnection services to African and international telecommunications companies, and end-to-end connectivity services to multinational corporations operating across Africa. With 350 employees and offices in 17 countries, it reported revenue of $257m for the fiscal year ended December 2007.Vodacom said the acquisition will enable it to connect to about 95% of the African continent, and will also reposition it as a provider of converged communication services, rather than just a mobile phone operator. Gateway will retain its brand after the completion of the acquisition. The deal does not include Gateway's broadcasting business.