Vodacom enters agreement with ITA to sell Angolan operations and assets
Vodacom Group has entered into an agreement with Internet Technologies Angola (ITA), the largest independent enterprise telecommunications provider in Angola. In terms of the agreement, ITA will acquire Vodacom Business Africa's Angolan operations and assets. The two entities are in the process of concluding the required agreements, which are subject to the approvals of the regulatory authorities within these markets. The financial terms of the transaction remain confidential.
The transaction supports Vodacom Group's enterprise strategy in Africa, which has been refocused to grow and strengthen its core business. It will no longer directly service global enterprise customers in these markets but will rather continue to operate as a pan African telecommunications networks provider through local service provider agreements.
This transaction forms part of the strategic repositioning announced earlier today by Vodacom of its Vodacom Business Africa operations that will ultimately result in three separate service provider agreements involving its enterprise businesses in Nigeria, Zambia, Angola, Ghana and Cote d'Ivoire.
Shameel Joosub, CEO of Vodacom Group, says: "Vodacom has a clear vision for strengthening our position as a leading pan-African business and will work with local service providers to grow in these markets. Crucially, Vodacom is not exiting any of the territories related to this transaction and remains focused on continuing to deliver exceptional service to our global and multinational clients in these markets through long-term commercial agreements. To support the sustainable growth of pan African digital economies and building connected societies, Vodacom will, via local service providers, continue to service clients in each market. We seek to leverage our collective strengths to meet the changing requirements of clients across each of these markets."
Rolf Mendelsohn, CEO of ITA says "ITA has a proven track record with partner relationships both locally and abroad, with a specific focus on the African continent. Building concrete and mutually beneficial partner networks is crucial to providing reliable telecommunications solutions to the enterprise business sector. ITA has nurtured a long-standing and committed relationship with Vodacom. This agreement further empowers ITA to strengthen its core business provisioning: reliable and sustainable yet flexible service offerings to its local and multinational clients."
Vodacom went through a robust and lengthy bid process with several interested applicants to find the right partner to reposition its business on the continent. ITA was selected as the successful bidder, amongst other reasons, for its ICT market leadership in Angola.
The new partnership model is better suited to the digital economy. It will encourage greater local collaboration and position Vodacom as one of the leading drivers of economic growth on the continent. It will also provide pan African customers with the opportunity to access specialist business divisions such as Vodacom's Internet of Things business as well as its subsidiary Mezzanine, a Mobile Business and Enterprise Solutions provider.