Safaricom Gets Nod To Acquire ICT Firms

Safaricom is set to gain a larger share of internet and data market after Finance Minister Uhuru Kenyatta gave Safaricom the go ahead to acquire IGO wireless and Instaconnect.

Safaricom had expressed its desire to buy the two firms in July, but lack of regulatory approval held back the closing of the deal and the integration of the companies into Safaricom's operations. 

IGO Wireless is a licensed public Data Network Operator engaged in the operation of fixed wireless data services while Instaconnect limited is licensed as an Application Service Provider engaged primarily in the integration of data solutions.

Both companies are active players in the ICT market and their acquisition is pursuant to Safaricom's stated strategic objective of enhancing their ability to grow their data business.Both companies are under one management and operate from Westlands on the outskirts of Nairobi’s Central Business District.

Already, Safaricom has created a new department-Strategy and New Business Development — whose functions includes searching for buyout opportunities, mostly in the data market, which underlines its desire to grow its data business to help cushion its business from the tough competition in the cut-throat voicemarket.

Safaricom’s first acquisition was a 51 per cent stake in One Communications — a Wimax services provider in August 2008.