The Competition Commission has granted unconditional approval for Afrihost’s proposed acquisition of Cipherwave Home Connect. In May, it was reported that the two companies had reached an undisclosed deal, with Afrihost acquiring a majority stake in the Internet service provider Home-Connect.
According to regulatory filings, Home-Connect will continue to operate independently as a stand-alone business. The specific details regarding Afrihost’s shareholding in the company have not been disclosed at this time.
The acquisition focuses solely on CipherWave’s fibre ISP division and comes two years after Afrihost’s acquisition of a majority stake in Cool Ideas, the Internet service and hosting provider, for an undisclosed amount.
The Competition Commission released a statement on Monday, stating that the proposed transaction is unlikely to result in a significant prevention or reduction of competition in relevant markets. Additionally, the Commission found no substantial concerns in terms of public interest.
Afrihost, which already holds a majority stake in Axxess, another prominent South African Internet and hosting provider, aims to leverage the benefits of a larger network and economies of scale through the Home-Connect deal. Their goal is to continue offering fast and unlimited Internet services at affordable prices.
The acquisition marks another strategic move in the competitive South African telecommunications market, as companies seek to expand their offerings and strengthen their market positions. With the regulatory approval in place, Afrihost and Cipherwave Home Connect can move forward with their plans for collaboration and growth in the evolving landscape of Internet services in South Africa.