Vodacom Completes Gateway Acquisition

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Wednesday, December 31, 2008

Vodacom Group is pleased to announce the completion of the acquisition of the carrier services and business network solutions subsidiaries of Gateway Telecommunications SA (Pty) Ltd ("Gateway"). This transaction, originally announced on 29 August 2008, has received approval from the competition authorities in South Africa and Tanzania and from the South African Reserve Bank.

Gateway is Africa's largest independent provider of interconnection services via satellite and terrestrial network infrastructure for both African and intercontinental telecommunications companies. Gateway also provides an extensive range of high quality, end-to-end connectivity solutions to multinational corporations operating across Africa.

Commenting on the conclusion of the acquisition, Vodacom Group CEO Pieter Uys said:

"Vodacom has sustained double digit growth for more than a decade. As mobile phone penetration levels increase in South Africa, we are actively repositioning Vodacom as a total communications provider with new avenues for growth. The Gateway acquisition is a key part of this strategy and I'm pleased to announce that the transaction has now been concluded."

The acquisition offers multiple strategic benefits including:

• Acceleration of international expansion
  • Broadens Vodacom's international presence in key markets throughout Africa, especially Nigeria, and creates a platform for future expansion
  • Positions Vodacom as partner of choice for multinational customers and international telecommunications providers seeking African connectivity
• Strengthening of total communications strategy
  • Complements Vodacom's business services strategy in South Africa and allows roll-out of existing products and services, in addition to new offerings, across the continent
  • Enabling the marketing of converged fixed and mobile offerings across Africa to Gateway's blue chip customer base
• Substantial growth potential
  • The nascent sub-Saharan business services market is expected to continue to grow
  • Access to new growth markets across Africa is designed to enhance Vodacom's growth profile
  • Significant synergy potential

Gateway will retain the current executive team and will be managed as an independent entity. The Gateway brand will also be retained.

Discussing the future, Gateway CEO Peter Gbedemah said:

"Vodacom and Gateway are a formidable combination. Gateway has a physical presence in 13 countries and provides services across 40 African countries. We have a unique pan-African service provider model and to this Vodacom brings additional resources, efficiencies and a wider product range."

News Source : Vodacom Completes Gateway Acquisition