center3, a wholly owned subsidiary of the stc Group, has announced a definitive agreement to acquire CMC Networks, a global service provider in networking solutions, significantly expanding its footprint in Africa and the Middle East. Financial terms of the deal were not disclosed.
This is technology M&A deal number 337 that ChannelE2E and MSSP Alert have covered so far in 2023. See more than 2,000 technology M&A deals for 2023, 2022, 2021, and 2020 listed here.
center3 is based in Saudi Arabia. The company has 193 employees listed on LinkedIn. center3’s areas of expertise include data connectivity and data centers.
CMC Networks, founded in 1989, is based in South Africa. The company has 185 employees listed on LinkedIn. CMC Networks’ areas of expertise include Data Communications, MPLS, African Connectivity, Ethernet, and Direct Internet Access.
Strategic Growth and Expansion
The acquisition is a strategic move by center3, aligning with its vision for growth in the Middle East and African markets.
CMC Networks operates in over 110 service locations and has the largest pan-African network, covering 51 out of 54 African countries and 12 countries in the Middle East, with additional hubs across Europe, the Americas, and Asia Pacific.
Leadership Perspectives on the Acquisition
Fahad Alhajeri, CEO, center3, commented:
"This acquisition is a landmark moment for center3. CMC’s global footprint, high-value customer base, and portfolio of capabilities are very complementary to center3’s digital infrastructure and connectivity assets. This 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 and capability in the African region and promising growth in the Middle East.”
Marisa Trisolino, group CEO, 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 partnership will unlock for CMC Networks.”