Bahrain-based telecom operator, Kalaam Telecom, has acquired Kuwait-based ICT provider Tawasul Telecom for an undisclosed sum. The acquisition was funded by Ahli United bank. The deal is deisgned to expand Kalaam’s reach beyond the borders of Bahrain. Tawasul has a strong network presence in the Middle East, UK and Singapore and offices in five countries.
“We see opportunities in the region. We are already doing business outside of Bahrain selling value added services to corporate clients in the Gulf and this will accelerate that growth,” he told Bloomberg Businessweek Middle East,” said Nezar Al Saie, Chairman of Kalaam Telecom, said.
The deal is the third acquisition for Kalaam over the past five years. In 2013-14 the company acquired two other Bahraini companies, NGNS and Lightspeed. These two deals were aimed at consolidating Kalaam’s position in the Bahraini market, Al Saie said.
“Almost 90% of Tawasul’s business is international while about 70% of our business is local and 30% international, so in that way it is very complementary,” Veer Passi, CEO of Kalaam Telecom said. “We are able to diversify our portfolio regionally and internationally. It will also help us diversify our product portfolio. We’ve always felt that the Bahrain market is too fragmented with too many IPSs operating in a tiny market, so after a while the only way for growth was for consolidation and we wanted to take a lead in that consolidation.”