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Liquid Telecom, a subsidiary of Econet Wireless Global, said on Tuesday that it has agreed to acquire Neotel, a South African fixed line operator, for 6.55 billion rand ($428 million).

The deal, which is subject to regulatory approvals, will transform Liquid Telecom into the largest pan-African broadband network with 40,000 kilometers of cross-border, metro and access fibre networks across 12 countries, according to a statement released by Liquid Telecom.

As part of the deal, Liquid Telecom said it has partnered with Royal Bafokeng Holdings (RBH), a South African investment group. RBH will take a 30 percent equity stake in Neotel.

“Leveraging the strengths of Liquid Telecom, RBH and Neotel, we will offer an unprecedented fibre network with a unique set of services and international connectivity for telecom operators and enterprises across sub-Saharan Africa,” said Nic Rudnick, Liquid Telecom’s CEO.

Neotel, which is majority-owned by Tata Communications of India, is South Africa’s second national fixed line operator after Telkom SA. Founded in 2001, Neotel offers voice, data, data centre, internet, and collaboration services through its fiber optic networks.

In March, Vodacom – South Africa’s largest mobile operator – canceled a two-year 7 billion rand bid to acquire Neotel because of regulatory difficulties.

“Liquid Telecom is the right partner for the next phase of Neotel’s evolution,” said Vinod Kumar, Tata Communications’ CEO. “Convergence of technologies and services will be the key driver of growth across the globe and this transaction will encourage inclusion and support the growth aspirations of the African continent.”

Founded in 1997, Liquid Telecom is the leading independent data, voice, and internet service provider in Eastern, Central, and Southern Africa. The company supplies fibre optic, satellite, and international carrier services to Africa’s largest mobile network operators, including MTN, Bharti Airtel and Vodafone.

Liquid Telecom is controlled by Strive Masiyiwa, the Zimbabwean billionaire, who is the Chairman of Liquid Telecom and Econet Wireless Global.