Nedbank Capital is joining the roster of Comsol’s investors following the private equity firm’s participation in a deal that saw the wireless access provider benefit from an initial R500 million or $34 million of investment. As a result, Nedbank becomes a 25% shareholder in Comsol, alongside existing shareholders Convergence Partners and the company’s management team.
The capital will be used to help the company launch Comsol Fibre Connect, a nationwide open access high-speed carrier grade data network. In addition to the funding raised for the initial rollout, Comsol expects to reinvest and spend a further R1-billion on existing fibre infrastructure and leased fibre, creating a massive opportunity for existing fibre players in the market.
“With the advent of Big Data, Internet of Things and cloud-based business applications and the increasing need for companies to use high-speed connectivity, the requirement for high-speed internet access is growing across businesses of all sizes and in all sectors. Whether an office in a CBD, a platinum mine in an outlying area, or a retail branch in a small town, a robust fast, efficient network is essential to growing and maintaining business operations,” said Iain Stevenson, CEO of Comsol.
In addition to its extensive coverage in the major metros, cities and district councils, Comsol will connect over 200 towns and cities across the country via Comsol Fibre Connect. Deployment in outlying areas has begun, with majority of towns to be connected by December this year.
“We are pleased to be working alongside the experienced management team of Comsol and co-investors Convergence Partners, a longstanding partner of the Nedbank Group. We are excited about Comsol’s prospects and the rollout of Comsol Fibre Connect, particularly of the ability for their network to reach previously inaccessible areas,” said Clive Howell, Head of Nedbank Private Equity.