O-Tel Telecoms, a service provider in South Africa, is looking for more acquisitions as it hopes to achieve more strategic growth, according to a recent company statement. The announcement comes shortly after O-Tel acquired Rheid Communications during 2011.

O-Tel appears especially interested in acquisitions or mergers with companies which are interested in local telecoms getting in the Cloud through cloud-based telephony services via a national partner/reseller network, according to the company.

O-Tel says it also wants to rapidly add more users to its database. One approach would be acquiring companies in PBX (News - Alert)/LCR which already have established databases and wish for a smooth transition into the digital telephony era. Another approach would involve a merger with a bigger company which already has a substantial dealer database and wishes to add more value by offering cloud telecoms services.

O-Tel Telecoms is also hoping to achieve strategic growth and lower its costs through these acquisitions.

“Mergers and acquisitions enable companies to increase their scale, reduce costs, as well as improve their access to capital, equipment, valuable skills and expertise, which in turn leads ideally to increased profits and service levels,” Mohammad Patel, CEO of O-Tel Telecoms, explained in a recent statement. “These factors have led many industry participants, from small cap to large cap, to discover growth opportunities from both inside and outside of M&A transactions as they work to increase shareholder value.”

Overall, the telecom sector has seen a lot of mergers and acquisitions. You need to have scale to be able to bear the risks that you are going to need to be able to deploy cloud services, inter-connect, increase subscribers, changing LCR income,” Patel added. “It also helps companies to diversify their portfolios.”

O-Tel provides many VoIP services, such as 1Cloud Hosted PBX, SIP Trunking, and Fax over IP. It also will soon offer a Centrex Cloud Call Center to its partners in PBX, IT service, LCR, wireless and ISP fields. O-Tel is an infrastructure as a service provider. It also offers white label services.