Dimension Data makes offer to purchase AccessKenya Group
Dimension Data makes offer to purchase AccessKenya Group
Dimension Data is set to acquire Kenyan technology supplier and corporate Internet services company AccessKenya Group for more than Ksh3 billion (R326, 4 million).
The open-market offer to purchase all of AccessKenya’s 218 million shares at a purchase price of Ksh14/share, a premium of 42% over the Friday 10 May, 2013 close on the Nairobi Securities Exchange. The transaction is contingent on shareholder acceptance and various regulatory approvals.
AccessKenya founded by brothers David and Jonathan Somen in 1995 under the name Communications Solutions Limited before being rebranded in 2000, has rallied strongly in recent months on market talk of a possible sale.
Dimension Data Middle East & Africa CEO Derek Wilcocks says the proposed deal is in line with the Nippon Telegraph and Telephone-owned technology group’s goal to pursue a strategy of expansion in sub-Saharan Africa.
“The growth opportunities and liberal and progressive ICT regulatory framework within Kenya make this market highly attractive for Dimension Data to establish an even stronger presence,” he says.
“Internet Solutions Kenya and AccessKenya have worked together on mutual clients for some years. In addition, we have good relationships, and there is also a strong strategic fit between the businesses.”
Dimension Data already operates in Kenya through subsidiaries Dimension Data Kenya, Internet Solutions Kenya and Plessey Kenya and intends to merge its Internet Solutions Kenya business with AccessKenya.
The AccessKenya Group includes the Internet service provider business as well as data carrier network operator Broadband Access, OpenView Business Systems, which was acquired in 2007, and its most recent acquisition, Satori Solutions, bought in 2009.
The company has more than 5 400 leased lines in service and operates 400km of fibre-optic infrastructure in Nairobi and Mombasa, complemented by Motorola Canopy and Alvarion WiMax wireless networks.