JSE-listed telecommunications company Huge Group says its rationale for acquiring Tethys Mobile, previously Virgin Mobile South Africa, is the subsequent ownership of its software and technology platform and the intellectual property related to it.
This follows the group’s announcement of its acquisition agreement with the shareholders and creditors of Tethys on Wednesday.
Read the Sens announcement here.
“The intention is to leverage the world-class technology built into this software and technology platform and the operational capabilities that exist in support of it,” it adds.
Huge Group says the platform includes a multi-tenant capable customer relationship management (CRM), a billing and online charging system and product, tariff, and real-time rating capabilities.
“Over the past 16 years, Tethys has created a very sophisticated technical and operational capability linked to this software and technology that will allow the company to provide a platform-as-a-services or PaaS to organisations [that] aspire to provide mobile virtual network operator or MVNO services.”
The fulfilment of the transaction will see Tethys exiting business rescue and operating as the group’s wholly owned subsidiary under Huge Digital Enablement Proprietary Limited.
Tethys, which is reportedly the country’s first mobile virtual network operator (MVNO), entered business rescue in September 2021.
In addition, Huge Group says the transaction will see post-commencement for creditors who supported Tethys during its business rescue process settled in full, including subscribers who were due refunds after network services were terminated.
The company will also acquire Cell C’s claims against Tethys and the claims of various pre-commencement creditors.
“The transactions are subject to various conditions, the most notable being the finalisation of Huge Group’s due diligence,” adds the company.
Nondumiso Lehutso is a Moneyweb intern.