Two of JSE-listed Huge Group’s directly and indirectly wholly owned investment companies, Huge Networks and Huge Telecom, have been combined as part of the group’s organic growth strategy.
The new entity, immediately unlocking significant operational benefits and synergies and underpinning significant growth over the medium and longer term, will leverage the inherent strengths of both companies for growth.
To be led by Huge Networks MD Dr Marius Oberholzer, the business combination will be implemented immediately, with completion expected by March 1, 2023, coinciding with the new financial year of the company.
The business combination will immediately yield various operational benefits, bringing together the commercial, go-to-market and distribution capabilities of Huge Telecom with the products, services and technical capabilities of Huge Networks to create a stronger, more capable entity.
“Huge Telecom's significant national footprint, partner network, regional presence and national technical resources, combined with Huge Networks' technology leadership and expertise will greatly enhance the newly enlarged entity's ability to achieve scale, unlock revenue growth and accelerate the delivery of increased shareholder value,” Huge Group said in an update to shareholders on Monday.
According to the company, the newly enlarged entity will be in a position to offer a significantly expanded product and services catalogue to its customers and more than 900 registered business partners.
These include an integrated telephony solution with dedicated voice transmission and data capabilities that comprise the full spectrum of bearers such as fixed fifth-generation and long-term evolution, carrier-grade fibre services and broadband fibre-to-the-business services.
In addition, the proposition expands to include data hosting services and platforms, SD-WAN solutions and various security applications.
The newly enlarged entity, with its national operating centre based in Centurion and East London, will have an expanded national presence with offices in Gauteng; the Western Cape; Durban, Pietermaritzburg and Escort; as well as East London; Port Elizabeth; Bloemfontein; Kimberly; and George.
The combined business will seek to aggressively grow its combined customer base of more than 19 000 business and small and medium-sized enterprise customers and will boast a combined turnover of about R300-million a year.