Knott-Craig says co-owners Luke Phillips and Dean Wolmarans “are excellent operators and give us depth in management”.
HX-Systems is the smaller of the two acquisitions and is based in Somerset West. It was founded in 2005 and provides coverage to households and businesses in Strand, Somerset West, Gordon’s Bay, Sir Lowry’s Pass Village, Croydon, Macassar, Stellenbosch and surrounding areas.
“Other than bringing footprint and customers, it has an excellent general manager,” Knott-Craig says of HX-Systems.
He says HeroTel continues to explore opportunities for more acquisitions in the WISP industry, while integrating existing partners. The group was established in 2014 with a mission to consolidate the WISP market and connect SA to high-speed wireless Internet.
“When we started HeroTel, we were a bit naïve about how quickly we would integrate and rebrand the WISPs. Fortunately, we also underestimated the profitably of the industry. So, whilst we’re way behind out initial rebranding deadline, we’re way ahead of our profit forecasts,” Knott-Craig adds.
In January, HeroTel expanded its footprint into Mpumalanga and Limpopo by acquiring Xpress Network Solutions Wireless, for an undisclosed sum. It also has WISPs in Gauteng, North West, Western Cape, KwaZulu-Natal and now the Eastern Cape.
In February, Knott-Craig told ITWeb that private equity company, Medu Capital, had acquired a 15% stake in HeroTel for R74.25 million.