Internet Solution (IS), one of the biggest pan-African communications services providers, announced today that they would be increasing their stake in WiFi provider AlwaysOn from 51% to a full 100%. No financial amount has been put on the transaction.
The news comes after Telkom earlier today revealed that they are making a R2.7-billion play for IT services company Business Connexion (BCX).
Internet Solutions detailed that WiFi has become a major factor in connecting device across the world, while there has also been an increase in the demand for cloud service.
“The demand for WiFi continues to grow at an extraordinary rate, brought about by the growth of a global society that expects to be always connected anytime, anywhere. For example in the U.S, WiFi connections account for more than 37% of digital traffic over mobile phones.
And about 90% of internet access from tablets is done via WiFi, not through a 3G or 4G network. There is also an increase in demand for cloud-based services and other high data-consuming functions at both the business and consumer levels,” said Sean Nourse, chief solutions officer, Internet Solutions, in a press statement.
IS acquired a 51% in AlwaysOn in 2009, and Nico Pretorius, managing director for AlwaysOn explained that the partnership will be mutually beneficial to both parties.
“In the five years that AlwaysOn has been in partnership with Internet Solutions, we have grown our WiFi network and our client base considerably. As the demand for WiFi continues, AlwaysOn and Internet Solutions together will reach more people as it expands its network and capability.”
The deal will allow IS to leverage off AlwaysOn’s 1 400 locations in South Africa, who also offers roaming capabilities at over a million hotspots in 110 countries.
Although AlwaysOn has been acquired by IS, the company will continue to trade under its original name and branding.[Source – Internet Solutions, Image – Shutterstock]