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Seacom Targets Acquisitions as Part of Its Enterprise Market Growth Plans

Eric Wainaina by Eric Wainaina
December 1, 2016
in News
Reading Time: 2 mins read
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SEACOM NETWORK

In August 2016, South African company Seacom announced its venture into the enterprise market with the firm now providing its services to corporate clients. SEACOM provides fiber optic in East and West Africa using its large network of a submarine and terrestrial fibre-optic cable. The company has been known for wholesaling these products mostly to internet service providers who then provide them to retail and enterprise market.

The firm was set to undertake these plans using a vehicle called SEACOM Business Initiative which would see it provide broadband connectivity and cloud services directly to corporates in the East African region. The initiative launched in South Africa in 2015 and has been keen to capture the East African market, where the company already has 50 corporates and SMEs signed up and using its products.

According to Business Daily, the South African plan is hoping to use its extensive cash war chest in snapping up other companies within the region as part of its expansion strategy in the enterprise space. The paper Quotes the company’s CEO Byron Clatterbuck, stating that they have an unlimited capital outlay to pursue such acquisitions.

Seacom is also hoping to leveraging its capacity on its undersea cable system and IP-MPLS network, as well as the capabilities of its cloud services in this venture, even at it looks for acquisitions. If its plans come to fruition, the firm will compete with some of its clients who it wholesales its network. The move is similar to an approach adopted by Liquid Telecom a few years ago, which since paid back for the company.

SEACOM launched the first broadband submarine cable system along the East African coastline in 2009 linking South Africa, Tanzania, Kenya and Mozambique with major Internet connection hubs in Europe and Asia.

Tags: Seacom
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Eric Wainaina

Eric Wainaina

Eric writes on business, govt policy and enterprise tech.

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