The Cairo-based Internet services provider (ISP) LINKdotNET announced the acquisition of nine Egyptian Internet companies in a share swap deal that will raise its current value to 365 million Egyptian pounds ($78.8 million). LINKdotNET plans to merge the different operations of the acquisitions into a single operational structure over the next 12 months.
The resulting business will deliver a wide variety of Internet services, targeting the wider Middle East region. Through the acquisitions, LINKdotNET will own eight new online businesses: ArabFinance.com, CareerMidEast.com, E-Dar.com, El3ab.com, Masrawy.com, Mazika.com, Nilemart.com and Otlob.com. The ninth addition to LINKdotNET is Internet Egypt, one of the largest independent ISPs in the country and the biggest lease line provider across Egypt.
Under the terms of the acquisition agreements, LINKdotNET will acquire majority shareholdings in each of these Internet companies through a stock swap deal including shares owned by the National Telecommunications Company (NTC), Commercial International Investment Company (CIIC) and EFG Hermes.
“In the post-dot.com era, strength, predictability and business efficiency are all essential for longer term Internet growth strategies. The LINKdotNET acquisition consolidates nine leading Egyptian Internet companies into one solid operating structure and is a healthy step forward for the region’s Internet business,” said Naguib Sawiris, chairman of Orascom Telecom and LINKdotNET. “This move strengthens not only LINKdotNET’s leadership position in the Arab world, but also Egypt’s overall position as an important participant in the Internet economy.”
“The ability to drive and sustain long term growth is the key to any Internet business today. These acquisitions will allow LINKdotNET to diversify its current business portfolio, whilst taking advantage of significant economies of scale,” said Khaled Bichara, president and CEO of LINKdotNET.
“This consolidation that brought OT, NTC, and LINKdotNET together will create a land mark in the Internet business in the Arab world,” said Hussein Al-Kholy, NTC chairman. “The Arab world has witnessed the birth of a regional Communications and Information Technology (CIT) giant that would take the ISP business into wider horizons across the region.”
Founded as Link Egypt in 1995, the company’s Arabian Gulf office was opened in Dubai in 1998. In July 1999, Orascom Telecom, the Middle East and North Africa’s telecom giant, made a strategic investment in Link allowing the start-up to expand regionally. In 2000, Link merged with Intouch, another major Egyptian ISP, to become the single largest private ISP in the Arab world and re-branded the firm LINKdotNET.
LINKdotNET service offerings include initial domain name registration and custom dedicated servers for e-commerce. LINKdotNET employs more than 300 consultants, web developers and support staff in Egypt, Dubai and Jordan.
Orascom Telecom is the largest GSM (Global System for Mobile Communications) network operator in the Middle East, Africa, and Indian sub-continent. With twenty-one licenses covering the region, Orascom Telecom has positioned itself as a leading telecommunications conglomerate in emerging markets.
Orascom Telecom manages GSM networks in Egypt, Algeria, Jordan, Syria, Yemen, Pakistan, Congo, Tchad, and 12 additional countries in Africa. In March 2002 Orascom Telecom was awarded the GSM license in Tunisia. In addition to its GSM operations, Orascom Telecom has other subsidiaries in the areas of internet and satellite technologies.
The company is publicly traded on the Cairo and Alexandria Stock Exchanges in Egypt and the London Stock Exchange. As of January 2002, Orascom Telecom and its GSM subsidiaries employ a workforce of over 6,757 employees.
NTC operates in the field of Telecommunications and Financial Services with twelve subsidiaries offering services including the operation, maintenance, integration, installation of different types of telecommunication and IT networks for public or private purposes as well as the manufacturing of telecom and broadcasting equipment. NTC subsidiaries includes: datacom infrastructure provider EgyNet, hosting facility Egypt Cyber Center and Quicktel, the Egyptian telecommunication equipment manufacturer. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
