Center3, a wholly owned subsidiary of Saudi Arabia’s stc Group, has finalized an agreement to acquire CMC Networks, a prominent provider of networking solutions in Africa and the Middle East. The acquisition aligns with Center3’s strategic goal of expanding its presence and capabilities in these regions, marking a significant step in its growth journey.
- Acquisition Agreement:
- Center3, a subsidiary of the stc Group, has entered into a definitive agreement to acquire CMC Networks, a leading networking solutions provider in Africa and the Middle East.
- CMC Networks operates a data communications network spanning over 110 service sites, with the largest pan-African network covering 51 out of 54 African countries and 12 Middle Eastern countries.
- Strategic Objectives:
- The acquisition is in line with Center3’s strategic objectives for growth and expansion in the Middle East and Africa.
- It reflects Center3’s commitment to extending its market presence and enhancing its offerings in these dynamic and rapidly growing regions.
- Acquirer’s Background:
- Center3 is a wholly owned subsidiary of the stc Group, based in Saudi Arabia.
- The move follows Center3’s prior investment in the 2Africa Cable project, emphasizing the company’s belief in Africa’s crucial role in its future expansion.
- Significance of the Acquisition:
- Fahad Alhajeri, CEO of Center3, describes the acquisition as a watershed moment for the company, emphasizing that CMC’s services complement Center3’s digital infrastructure and networking assets.
- The transaction demonstrates strategic commitment to entering key markets with significant growth potential.
- CMC Networks’ Reach and Expertise:
- CMC Networks Group CEO, Marisa Trisolino, sees the acquisition as an exciting development, expressing shared visions for further development in the African market.
- The combination of both companies’ strengths is expected to foster innovation, enhance customer service, and create new growth opportunities in African and Middle Eastern markets.
- Investor’s Perspective:
- The Carlyle Sub-Saharan Africa Fund (CSSAF) is acquiring CMC Networks, with the CSSAF team establishing Alterra Capital Partners (Alterra) in 2020 to advise its investments.
- Eric Kump, an Alterra partner, sees the acquisition as a fantastic opportunity to bring together dynamic teams from Center3 and CMC Networks.
The acquisition of CMC Networks by Center3, a subsidiary of the stc Group, underscores a strategic move to enhance digital infrastructure and networking assets in Africa and the Middle East. The collaboration is expected to drive innovation, improve customer service, and unlock growth opportunities in key markets. The transaction reflects a broader belief in the potential of these regions and aligns with Center3’s vision for future expansion.