Ethos Mid Market Fund I (‘EMMF I’), today announced the closing of a c.31% investment into South African-based corporate Internet Service Provider (‘ISP’), Echo.
Founded in 2010, Echo provides Global ISP Services via a multi-carrier converged network, to simplify the complexity of aggregating infrastructure for its clients.
Arshad Essa, Ethos partner, stated:
“We are investing behind Echo’s market penetration drive into South Africa, where the business already provides best-of-breed network solutions to an increasingly diversified client base. Our partnership model means that – together with the Echo team — we can focus on rapidly augmenting Echo’s platform, which delivers some of the fastest and most seamless solutions available in the local market. Together, we see opportunities to refine Echo’s South African operations, while growing sub-Saharan prospects. We are aligned on the strategic vision and excited to contribute to Echo’s next phase of growth.”
Angus MacRobert, Echo Executive Chairman, added:
“Beyond relevant and meaningful BEE credentials, we believe that the Ethos mid-market team brings world-class investment and commercial expertise to Echo. Throughout the analysis and diligence process, I’ve been impressed by the team’s growth mindset and long-term thinking. We have a shared vision for Echo and I believe we’ve chosen the best business partners for growth.”
Stuart Mackenzie, Ethos CEO, concluded:
“Echo marks our sixth investment in the Ethos Mid Market Fund in just over a year; it sits squarely within our strategy of investing into businesses where we can accelerate growth. We are encouraged by the number of quality opportunities we are assessing and pleased with the momentum of our capital deployment. The Mid Market Fund represents a unique combination of proven institutional investing and value-adding capacity, coupled with sustainable black economic empowerment solutions and transformational impact. ”
The transaction is not subject to any outstanding regulatory approvals or conditions precedent.