Vodacom has agreed to acquire the carrier services and business network solutions subsidiaries of Gateway Telecommunications SA, it said on Friday.

The enterprise value was approximately $675-million plus a makewhole payment of approximately $25-million in relation to Gateway's high-yield bond, Vodacom said in a statement.

"The acquisition of Gateway reflects Vodacom's strategy to reposition itself as a leading pan-African provider of communications services and to diversify from its current status as primarily a mobile-centric network operator," said Pieter Uys, group chief executive officer designate.

He added that Gateway's significant presence across Africa would allow Vodacom to tap into the huge potential for growth in business services and connectivity and would enhance its position with multinational corporations.

The transaction remained subject to certain conditions, including approval from the South African Reserve Bank and the relevant regulatory and competition authorities.

Sapa