Gateway Acquires GS Telecom

Pan-African satellite provider Gateway Communications to acquire GS Telecom for $37.5M

May 9, 2007

2 Min Read

LONDON -- Gateway Communications, a leading provider of pan-African voice and data connectivity services, has agreed to acquire GS Telecom, provider of data connectivity services to corporate customers and telecommunications operators in Africa. The transaction was valued at approximately $37.5 million and is to be financed through a combination of cash and funds from a newly issued bond. The transaction is expected to complete mid-May subject to certain conditions.

GS Telecom provides services in 27 African countries, with a major presence in Nigeria, the fastest growing communications market in Africa over the last five years.

The transaction would strengthen Gateway’s position as the largest provider of voice and data connectivity services in sub-Saharan Africa, boosting Gateway’s customer base with an additional 200 customers to over 1,200 customers in over 37 countries in Africa (Gateway’s current network includes 30 African countries). The acquisition would bolster Gateway’s presence in the rapidly growing business communications market and provide access to local infrastructure and support capability.

Julian McIntyre, President of Gateway Communications commented:

“This is a substantial acquisition which marks a further step in our strategy to consolidate our leading position in the rapidly growing African communications market. We are committed to improving the value proposition that we can offer to our customers, and the customers of GS Telecom, through providing a broader service range, greater geographic coverage and excellent local and international support capabilities. We look forward to working with the GS Telecom management team and staff to grow the enlarged Group.”

Steve Chapman, President and CEO of GS Telecom commented:

“Gateway and GS Telecom are an excellent match; Gateway is a leader in the carrier market while GS Telecom is a leader in the business communications market. Gateway has a major international presence, while GS Telecom has strong local support. We have highly complementary services and geographic coverage and our combined customer base will include the major businesses and mobile operators in Africa.”

Gateway Communications

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like