The recent R1.9bn acquisition of mobile solution distributor 3G Mobile by Blue Label and its wholly-owned subsidiary The Prepaid Company Proprietary Limited or 'TPC' has reinforced Blue Label's position in terms of engaging the wider Africa market.

According to information made public by the companies, the shares in 3G Mobile will be acquired in two stages, with the initial acquisition by TPC of 47.37% of the issued share capital of 3G for a purchase consideration of R900 million, and the remaining 52.63% of the issued shared capital of 3G Mobile for a purchase consideration of R1.0 billion.

The acquisition means that 3G Mobile will be used as Blue Label's expansion platform into the financing and supply of mobile devices, handsets and allied products.

"Both of these functions supplement Blue Label's strategic objectives to provide value added services to both Cell C and its own customer base. 3G Mobile provides the ideal platform to consolidate Blue Label's low cost and certified pre-owned mobile handset divisions into a consolidated group. The resultant acquisition is both earnings accretive and provides a solid foundation for distribution into the burgeoning low cost smartphone market," the companies explain.

Brett Levy, joint-CEO of Blue Label, says 3G Mobile is one of Africa's largest distributors and financiers of mobile devices and handsets. "It operates in eight African countries, with offices in South Africa, Namibia, Botswana, Mauritius and distribution channels into Zambia, Zimbabwe, Swaziland and Lesotho."

Levy adds that 3G has distribution rights for all major tier one and two mobile device and handset manufacturers, and complements Blue Label's own tier three handsets and devices, such as Boost.

"Together, these tiers constitute an end-to-end hardware business, housed under one roof."

Blue Label also serves the burgeoning tier four device market through its Reware venture. Reware sources, repairs, refurbishes, certifies, repackages and distributes pre-owned smartphones for the retail market.

In acquiring 3G Mobile, Blue Label's suite of content products and data services will now be available seamlessly to clients across its African footprint.