Vodacom Purchased 51% of StorTech

Vodacom announced the acquisition of a shareholding in Storage Technologies Services (StorTech), a managed enterprise data centre services company providing a range of storage and security services. Vodacom (Pty) Ltd has purchased 51% of StorTech; approximately 31% will remain with StorTech’s BEE partners and approximately 18% with StorTech’s management.

Pieter Uys, Chief Executive Officer designate of Vodacom Group said: "The launch of Vodacom Business in February this year signalled our intention to diversify Vodacom’s activities into the convergence space, and to invest in new avenues for growth.

"The acquisition of a shareholding in StorTech is a continuation of this process. StorTech is already a supplier to Vodacom, and as a subsidiary, Stortech will give Vodacom access to additional technical and engineering skills and will release synergies."

There is a strategic fit between StorTech and Vodacom, the combination of which will provide benefits to both companies and their customers. StorTech’s portfolio complements Vodacom Business’ enterprise solutions-focused division and expands upon Vodacom’s data centre services capabilities.

Tim Knowles, Chief Executive Officer of StorTech said: "StorTech is delighted with the merger and I am personally excited that my management and I will be staying onboard as part of a growing force in the ICT business services market. We look forward to a productive and creative relationship and ensuring a seamless experience for our customers and business partners."

The transaction remains subject to certain closing conditions, including approval from the relevant competition authorities in South Africa.