Blue Label acquires 60% stake in airtime advance provider Airvantage

Monday 26 February 2018 | 09:15 CET | News

South African company Blue Label Telecoms is buying a 60 percent stake in local company Airvantage for ZAR 151 million, ITWeb reported. Airvantage offers services that allow mobile operators to advance airtime, content, data and mobile money to subscribers. The advance is recovered the next time the customer recharges or tops up their airtime. 

The group has operations in a number of emerging markets, and besides airtime advance, it offers mobile financial services, handset financing, mobile marketing, mobile money lending and other value added services.

The deal was done on 02 January and the transaction will be officially completed once approval from the South African Reserve Bank (SARB) is obtained. The whole deal is worth around ZAR 226 million and includes another USD 6.4 million (ZAR 75 million) to be paid after SARB approval is received for the acquisition of 60 percent of AV Technology, an affiliate company of Airvantage incorporated in Mauritius.

According to Blue Label joint CEO Mark Levy, Airvantage is "a phenomenal acquisition" for the listed company. Airvantage uses complex algorithms to determine what kind of customer meets its behavioural criteria and also dynamic rules based on each subscriber's behaviour that increase advances accordingly. Levy said Airvantage is currently doing about 100 million transactions a month and over USD 1 billion in sales in its various markets.


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