RMB Corvest and Shalamuka Capital Acquire Stake in VoIP Telecom Provider Switch Telecom

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Private equity firm RMB Corvest, in collaboration with BEE investment vehicle Shalamuka Capital, has completed the acquisition of a minority stake in Switch Telecom, a leading Voice over Internet Protocol (VoIP) telecommunications service provider. The deal strengthens Switch Telecom’s position in the market and enhances its B-BBEE scorecard through the acquisition of a 30% stake.

Key Points:

  1. Switch Telecom’s Service Offering:
    • Founded in 2006, Switch Telecom specializes in cost-effective fixed line voice services using VoIP technology, catering to residential, corporate, and wholesale clients primarily in South Africa.
    • The company boasts a comprehensive service portfolio, providing an established foundation for its new stakeholders.
  2. Strategic Partnership with RMB Corvest and Shalamuka Capital:
    • RMB Corvest and Shalamuka Capital have joined forces to acquire a minority stake in Switch Telecom, a move that signifies a strategic investment in the evolving telecom sector.
    • The transaction aims to leverage the growth potential of VoIP subscriptions, as the industry shifts away from traditional copper-based fixed line connections.
  3. Leadership Retention and Expertise:
    • CEO Gregory Massel and Managing Director Shannon Swanepoel, the current majority shareholders, will continue to lead the business, ensuring continuity and stability.
    • The leadership team recognizes the ongoing demand for VoIP services, particularly in the context of the prevalent hybrid work model.
  4. Competitive Edge and Customer-Centric Approach:
    • Switch Telecom holds a strong market reputation, built on a track record of exceptional service delivery and the ability to provide tailored solutions to clients.
    • The company’s flexibility in deploying VoIP solutions across various broadband connections enhances its value proposition.
  5. Resilient and Scalable Business Model:
    • Switch Telecom’s product suite is characterized by resilience, adaptability, diversification, and defensiveness, positioning it for sustained growth.
    • The business demonstrates scalability, enabling seamless onboarding of new customers and contracts without compromising quality or customer satisfaction.
  6. Strategic Outlook and Investment Potential:
    • With the founding management team remaining invested alongside RMB Corvest and Shalamuka Capital, the investment is poised for resilience and growth.
    • The forecasted growth prospects in the telecom sector, coupled with the established leadership, promise a rewarding investment opportunity.

Conclusion: The partnership between RMB Corvest, Shalamuka Capital, and Switch Telecom signifies a strategic move to capitalize on the evolving telecom landscape, with a focus on VoIP services. This acquisition not only bolsters Switch Telecom’s market position but also sets the stage for continued growth and innovation in the telecommunications sector. With a dedicated leadership team and a robust business model, the investment promises to be a resilient and lucrative endeavor.


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