Saudi Arabia’s center3 acquires CMC Networks
Center3, a wholly owned subsidiary of the stc Group based in Saudi Arabia, has entered into a definitive agreement to purchase CMC Networks, a provider of networking solutions across Africa and the Middle East.
CMC Networks operates data communications network spanning more than 110 service sites.
It boasts the largest pan-African network, serving 51 of 54 African countries and 12 Middle Eastern countries, as well as regional hubs in major interconnect sites spanning Europe, the Americas, and Asia Pacific.
According to a joint release, the acquisition is consistent with center3's strategic objective for growth and expansion in the Middle East and African regions.
"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," according to the press release.
The Carlyle Sub-Saharan Africa Fund (CSSAF) is acquiring CMC Networks.
In 2020, the CSSAF team established Alterra Capital Partners (Alterra), a distinct private equity firm that continues to advise CSSAF's investments, including CMC Networks.
"This acquisition is a watershed moment for center3," stated Fahad Alhajeri, CEO of center3. “CMC's range of services fit center3's digital infrastructure and networking assets very well.
"This transaction demonstrates our strategic commitment to entering key markets with significant growth potential. Our prior investment in 2Africa Cable, along with this acquisition, demonstrates our belief in Africa's critical role in center3's future expansion.”
We are pleased about the opportunities presented by CMC Networks, particularly its experience, capability in the African region, and prospective expansion in the Middle East."
CMC Networks Group CEO Marisa Trisolino, added: "Joining forces with center3 is an exciting development for us. We share a same vision of further developing in the African market, and by working together, we will be able to do more, innovate more, and provide greater value to our clients.
"This acquisition will combine both companies' strengths, fostering innovation, improving customer service, and providing new opportunities for growth in the African and Middle Eastern markets. We are enthused about the future and the prospects that this collaboration will provide for CMC Networks."
Meanwhile, Alterra partner Eric Kump stated, "This acquisition is a fantastic opportunity to bring the dynamic center3 and CMC Networks teams together."
The transaction is subject to the usual conditions and approvals.