Gateway Communications has acquired Link Africa, the pan-African satellite service provider and subsidiary of Celtel International, for more than US$50mn in cash. The sale is subject to approval by the South African Reserve Bank. From its international hub in Belgium, Link Africa has grown into one of Africa's largest international service providers, delivering services in more than 15 African countries, switching approximately 7.5% of the international telephone traffic for Sub-Saharan Africa. Link Africa has achieved revenues of US$68mn in 2004 and substantial profitability. The acquisition will create the largest African-focused service provider on the continent, delivering the broadest range of connectivity services in more than 25 African countries to 70 telephone companies and 600 multinational corporations. Post-acquisition, Gateway will maintain a strategic partnership with Celtel and continue to deliver services across the Celtel group. The sale of Link Africa is part of Celtel's strategy to divest non-core businesses and will enable the management to focus on its core business of mobile telephony in Africa.

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