Specialists in the deployment of fibre cables and associated engineering services for the telecommunications industry

South Africa
Construction; Technology, Media, Telecom & Data
Client Code: BN000029897
Turnover (Actual): R81,474,993
EBITDA (Actual): R17,697,506

Our client delivers full turnkey service projects or service-on-demand projects for fibre installation for major telecommunications companies, network operators, and engineering and construction companies. Solutions are turnkey in that they include planning, wayleave processing, and building fibre networks across South Africa. Broadly speaking, projects are divided into Civil Builds, Trenching and Duct Installations, and Optical Builds, which is installing and end terminating of the fibre optic cables into the ducts. 

Key Aspects
  • The company implements telecommunications services and the associated civil construction work that is required for these implementations
  • As a turnkey, full-service provider, our client is one of only a few companies that is part of South Africa's biggest broadband rollout projects ever, thanks to a national government and corporate partner project
  • B-BBEE Level 2
  • Strong historical revenue growth
  • Secured pipeline of multiyear projects and recently awarded tenders
  • Proven expertise and a reputation for reliable service delivery
  • Significant asset base of specialised engineering machinery
  • Technical skills within multiple specialised teams 
  • Industry accreditations which are a barrier to entry
  • Preferred suppliers to blue chip network operators  
  • All civil works are completed inhouse, with local communities supplying additional unskilled labour on demand
Opportunities
  • The continually increasing demand for fibre services across South Africa and neighbouring African countries ensures significant and continued demand for our client's services.
  • The company is a preferred service provider to a network operator that is part of the biggest broadband rollout in the history of South Africa. Thanks to partnerships with the Eastern Cape Government and the Western Cape Government, 2700 sites will receive broadband connections over the next 10 years.
  • Grow the recurring income base will be achieved by growing the number of maintenance contracts on completed projects.
  • Expanding the service offering to provide building services to local municipalities, especially those acssociated with the installation of fibre is another signficant opportunity for growth. A recently employed Building Contracts Manager will be spearheading this division.
Headquartered
  • Cape Town, South Africa, with regional offices in Port Elizabeth and East London, and a presence in central Eastern Cape, the Southern Cape, and on the West Coast. 
Current Markets
  • All major international and local network operators in South Africa, including Liquid Telecom, Telkom, Frogfoot, ZTE (MTN), and a 21-company strong group which includes Herotel, Border Internet and IG (Internet Generation).
  • It requires significant effort to be vetted as a preferred supplier to these network operators, is expensive and is a hefty and timeconsuming administrative burden. Acquiring the company will provide immediate access to this clientele.