RIYADH, Saudi Arabia, Dec. 20, 2023 /PRNewswire/ -- center3, a wholly owned subsidiary of the stc Group, announces that it has entered into a definitive agreement to acquire CMC Networks, a global service provider offering market leading networking solutions across Africa and the Middle East.
CMC Networks operates across more than 110 service locations with a cost-effective, scalable, and resilient data communications network. It has the largest pan-African network servicing 51 out of 54 countries in Africa and 12 countries in the Middle East, plus regional hubs in key interconnect locations across Europe, the Americas, and Asia Pacific.
The acquisition aligns with center3's strategic vision for growth and expansion in the Middle East and African markets. It represents a significant step in the company's journey to extend its market presence and enhance its offerings in this dynamic and rapidly growing region.
CMC Networks is being acquired from the Carlyle Sub-Saharan Africa Fund ("CSSAF"). In 2020, the CSSAF team formed a separate private equity firm, Alterra Capital Partners ("Alterra"), which continues to advise CSSAF's investments including CMC Networks.
Fahad AlHajeri, CEO at center3, said:
"This acquisition is a landmark moment for center3. CMC's enviable global footprint, high value customer base and portfolio of capabilities is very complementary to center3's digital infrastructure and connectivity assets. This acquisition exemplifies our strategic commitment to enter key markets with significant growth potential. Our previous investment in 2Africa Cable, coupled with this acquisition, underscores our conviction in Africa's essential role in center3's future growth. We are excited about the possibilities that CMC Networks will bring including its wealth of knowledge, capability in the African region and promising growth in the Middle East."
Marisa Trisolino, Group CEO of CMC Networks, said:
"Joining forces with center3 is a thrilling development for us. We share a common vision of further expanding in the African market and together we will be able to achieve more, innovate further, and deliver enhanced value to our customers. This acquisition will bring together the strengths of both companies, fostering innovation, enhancing customer service, and providing new opportunities for growth in the African and the Middle East market. We are excited about the future and the opportunities that this acquisition will unlock for CMC Networks."
Eric Kump, Partner at Alterra, said:
"This acquisition is a fantastic opportunity to bring the dynamic center3 and CMC Networks teams together."
The acquisition is subject to customary conditions and approvals.
About center3
center3, a subsidiary of stc Group, was created to fulfil Saudi Arabia's vision of becoming a global data and communications hub, leveraging its strategic geographical position to link Europe, Asia, and Africa, and to establish itself as a digital hub in the MENA region. With its extensive network of data centers and submarine cable systems, center3 is uniquely positioned to provide its specialized services across the region.
Visit https://center3.com.
For further information please contact Rrsjouenne@center3.com
About CMC Networks
CMC Networks is a service provider that enables and accelerates digital transformation in the most challenging markets in the world. Headquartered in South Africa, providing network reach across six continents with innovation in AI, cloud on-ramp, cybersecurity, EDGE Cloud, SDN, virtualisation, and a range of services to solve to MNC's, Carriers, Governments, and non-profit organisations challenges with world-class solutions in the MEA region.
Visit https://cmcnetworks.com
For further information please contact Ana.Serrao@cmcnetworks.com
About Alterra Capital Partners
Alterra is an experienced pan-African private equity fund manager dedicated to investing in Africa. The Alterra team, operating out of offices in Johannesburg and Nairobi, have led over $1.0 billion of private equity investments into 23 companies across Africa. Alterra's core focus sectors include business services, healthcare, technology, and telecommunications.
For further information please contact Mtshuma@alterracapital.com
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