South Africa okays Afrihost, Cool Ideas merger

South Africa okays Afrihost, Cool Ideas merger

South Africa's Competition Commission has unconditionally approved the merger of ISPs Afrihost and Cool Ideas.

 "The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any public interest concerns," the organisation said.

In June, Afrihost and Cool Ideas said they had concluded a deal in which Afrihost would buy a majority stake in Cool Ideas.

Afrihost is an internet services provider (ISP), including retail supply of internet access services to residential and small businesses, voice over internet protocol services, data hosting services and ancillary services (eg, Web site design, internet marketing, internet domains), and mobile voice and data services (as a reseller).

Cool Ideas is an ISP that provides retail internet access services to house users, small businesses, and large businesses. It was founded by Jooste and Butschi in 2011 when they explored prospects for starting a hosting business.

The majority stake in Cool Ideas will make Afrihost a significantly bigger player in the South African fibre ISP market. Afrihost already owns a majority stake in Axxess, one of the country’s premier service providers. This acquisition will create a powerhouse with three of South Africa’s top ISPs under the same umbrella.


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