HeroTel has purchased 100% of VTN Communications (VTNC), a national provider of VoIP and PABX Systems, for an undisclosed sum.
VTNC was established in 2011. Under the leadership of Managing Director, Louis van der Wath, VTNC has grown from a small telephony reseller to a major player in the South African market, serving many household names and a growing number of multinational businesses. With a sales and support network of 20 dealers across the country, VTNC provides carrier-grade voice solutions including VoIP, TMS and PABX systems from Samsung and Mitel.
HeroTel has grown exponentially to become South Africa’s largest Wireless Internet Service Provider (WISP), through acquisition and an aggressive organic growth strategy. VTNC is the 28th acquisition that the Group has concluded thus far. This is the first major deal that is not a pure WISP-play.
“We have a clear strategy to develop a set of real value-added services for our clients”, HeroTel Group Chairman, Alan Knott-Craig, told ITWeb in an exclusive interview. “We have a rapidly growing client base of over 45,000 users that are looking for more than just connectivity from us. VTNC will allow us to offer voice services to these clients, at a scale and quality, that would be difficult to reproduce organically.”
Corne’ de Villiers, HeroTel CEO said: “VTNC in its own right is a very successful company, on an accelerated growth path and we are excited to have them in the Group. Their client base consists mostly of multi-branch national and international businesses and we see limited overlap, but huge strategic synergies. Our business users are mostly SMB and large corporate companies. The skills that Louis and his team bring will allow us to build robust cloud and onsite voice solutions for our existing clients. VTNC in return gets a partner who is able to offer quality on-net last mile connectivity to its business clients, through HeroTel’s own high-speed fibre and fixed wireless networks.”
“We are excited about joining the HeroTel Alliance,” said van der Wath, “HeroTel operates in the major metros and hundreds of smaller towns, while VTNC has a presence in all the big cities in South Africa. We see an excellent opportunity for us to assist the HeroTel WISPs in building a strong voice revenue stream while improving the consistency and quality of the VoIP experience for their clients. HeroTel has a large staff and network footprint, which will assist VTNC to expand our own sales, engineering and support capability to our existing client base. This is a great partnership, in the true sense of the word.”
HeroTel now has expanded coverage via its WISPs in the North West, Gauteng, Limpopo, Mpumalanga, the Western Cape, KwaZulu-Natal, the Eastern Cape and surrounds. Last week ITWeb reported on the acquisition of True Communications and HeroTel management expects to be announcing even more deals soon.