Several news outlets reported last week that Kenya’s Wananchi Group has agreed to sell its business services unit to Synergy Communications, a South African firm backed by private equity fund manager Convergence Partners. No terms of the deal, which is subject to regulatory approval, were reported.
In a statement, Alex-Handrah Aimé, who chairs Wananchi Group’s Board, said the sale would be the best way to unlock shareholder value in the business services unit and would allow Wananchi Group to focus its efforts on developing new products and services for Zuku, its consumer and retail services business.
In buying the unit, Synergy Communications (SynCom) will take over running the operations of the three Wananchi Business Services brands—SimbaNET, Wananchi Telecom and iSAT—without interruption, providing dedicated internet, managed network solutions, data centre, cloud and wholesale carrier solutions to corporate clients in East Africa across fibre, wireless and satellite networks.
“The proposed acquisition of the units presents a tremendous opportunity for business growth and investment on the back of a proven and successful business model,” Geoff Hardwick, SynCom’s CEO was quoted as saying in online publication, Techmoran. “The focus on corporate and enterprise customers perfectly fits our goal of providing high quality, enterprise communications services and products across the sub-Saharan region”.
Synergy Communications is backed by Convergence Partners Communications Infrastructure Fund, which closed with $200 million in late July 2015. Its other investments include Internet Solutions Mozambique, Skyband Malawi and Virtual Business Network Services Botswana.