Liquid Intelligent Technologies, which is owned by Strive Masiyiwa, is going to acquire Telrad, an Israeli-based technology company. Telrad is listed on Israel’s main stock exchange, the Tel Aviv Stock Exchange. The acquisition will be done at a cost of 207 million Israeli shekel, which is equal to US$60 million. The transaction is still subject to Telrad shareholder approval and other Israeli regulatory approvals.
Liquid Intelligent Technologies Profile
Liquid Intelligent Technologies is a pan-African technology group present in more than 20 countries, mainly in sub-Saharan Africa. Its parent company is Cassava Technologies, which is owned by Strive Masiyiwa. Liquid is the leading provider of pan-African digital infrastructure with an extensive network covering over 100,000 km. Business units of Liquid include Liquid Networks, Liquid Cloud & Cyber Security and Africa Data Centres. Liquid high-speed cross-border fibre network has grown to over 100,000km. It is Africa’s largest independently owned fibre network, offering connectivity to all the main subsea cable systems that link Africa to the rest of the world. Liquid was the first company to establish a direct terrestrial communication link between Cape Town, South Africa, and Cairo, Egypt – stretching the entire length of the continent and offering improved latency. It also owns 5 data centers and satellite earth stations.
Telrad is an Israeli-based technology company listed on the Tel Aviv Stock Exchange. Telrad has a footprint in several tech areas, including networking, cyber security, cloud infrastructure, data centres, information technology, geoinformatics and education. It is a telecommunications equipment manufacturer specializing in mainly LTE telecom solutions. Telrad primary customer base consists of wired and wireless ISPs, municipalities, public and private enterprises with an expansive portfolio that consist of 2.5, 3.5, 5GHz and CBRS solutions. It has customers in over 100 countries. Telrad, which was founded in 1951, has three main areas of business, through its subsidiaries: provision of products, solutions and services to telecommunications operators; telecommunications infrastructure, cyber, and IT; and project management and digital mapping services.
Reasons for Acquisition
This acquisition is a way for Liquid to enter into a new market (Israel & Middle East) as well as gain Telrad’s differentiated technology solutions. Telrad’s strong R&D program and technology solutions will complement Liquid Intelligent Technologies’ owned infrastructure and digital solutions offerings and support its long-term growth strategy. The acquisition will strengthen Liquid’s B2B product segments and its geographic reach, leveraging Telrad’s presence in 13 countries across the Middle East, South America, United States, Eastern Europe and Asia. Telrad’s advanced proprietary technology in areas including cyber security, data centres and wireless access technology will be a great asset to Liquid’s digital solutions. Together, they will be able to leverage Liquid’s pan-continental infrastructure to scale innovative, technology solutions and expand the breadth of digital services offerings across and beyond Africa
Other Liquid Acquisitions
Acquisitions have played an important role in the growth of Liquid Intelligent Technologies. Liquid was established in 2005 in South Africa, where Strive Masiyiwa was based. In 2008 it acquired Data Control Systems to establish Liquid Zimbabwe. Liquid then acquired ZOL, a Zimbabwean Internet Service Provider in 2012. In 2013, Liquid acquired Kenya Data Networks, which became part of Africa Data Centres. Liquid also acquired Realtime Zambia in 2015, which was a Zambian Internet Service Provider. In order to link the east coast of Africa to the west coast by fibre, Liquid acquired IRU in 2016, which was a DRC fibre company. The largest acquisition of Liquid was in 2016, when it acquired Neotel, a South African telecommunications company, for US$435 million.
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Full Press Release
Below is the full press release for the Telrad acquisition:
London and Tel Aviv – Liquid Intelligent Technologies (“Liquid”), a pan-African technology group, today announced that it has entered into a definitive agreement to acquire Telrad (TASE: ILA), an Israeli-based technology company.
Telrad provides and maintains high quality technology products and services for global business and governments. The company develops innovative technology solutions across business areas including networking, cyber security, cloud infrastructure, data centres, information technology, geoinformatics, and education.
This transaction brings together Telrad’s differentiated technology solutions with those of Liquids’ unique, integrated platform of digital infrastructure and services. Telrad’s technology solutions and extensive R&D capabilities, including two dedicated R&D centers, will complement Liquids’ offerings and support its long-term growth strategy.
The acquisition will strengthen Liquid’s B2B product segments and its geographic reach, leveraging Telrad’s presence in 13 countries across the Middle East, South America, United States, Eastern Europe and Asia.
Nic Rudnick, Group Chief Executive Officer of Liquid, said: “Telrad’s advanced proprietary technology in areas including cyber security, data centres and wireless access technology will be a great asset to Liquid’s digital solutions. Together, we will be able to leverage our pan-continental infrastructure to scale innovative, technology solutions and expand the breadth of our digital services offerings across and beyond Africa.”
Telrad Chief Executive Officer, Moti Elmaliach, said: “Liquid has an incredibly strong track record of success and a rich history of innovation. We are excited to join forces and to leverage Liquid’s expertise across the full technology value chain, from the subsea cable to the last mile. This is an exciting step for Telrad, our team and the customers we serve.”
Many leading global technology companies have chosen Liquid Intelligent Technologies as their trusted partner to accelerate digital transformation and we look forward to delivering on this shared ambition together.”
The transaction is subject to customary closing conditions, including Telrad shareholder approval.