South African fintech group Capital Appreciation has broadened its portfolio of innovative technology companies, after acquiring three local tech firms and buying a 20% stake in a Netherlands-based organisation.
According to a statement, Capital Appreciation has acquired the Responsive Technology Group for R48.68 million. The acquisition includes three South African companies: Responsive Tech (100%), Responsive Digital (100%) and Rethink Digital Solutions (71%).
Responsive is a digital solutions group that designs and develops digital applications for clients across SA, US, Europe and the UK. The group has a 10-year track record of delivering complex digital transformation projects, web and mobile apps, as well as technology products for South African and international blue-chip clients, says Capital Appreciation.
These clients include Brambles (CHEP), Capitec, Coronation, Experian, MoneyGram, Nedbank and Old Mutual.
As part of the transaction, Capital Appreciation says it will subscribe for 20% of the issued shares in Regal Digital BV, a related party technology company located in the Netherlands, for a cash investment of €500 000 (R8.5 million).
Regal Digital is the operating company of Firelava, a consulting services business focusing on Web 3.0 technologies, non-fungible tokens and blockchain solutions.
“Responsive fits well with Capital Appreciation’s investment philosophy of investing in established, asset-light growth companies that deliver innovative and disruptive fintech solutions to mainly institutional clients,” says Capital Appreciation joint-CEO Bradley Sacks.
“We also look forward to exploring the potential for synergistic opportunities with existing operating units.”
Capital Appreciation is a fintech enterprise with three business units: African Resonance and Dashpay (payments), Synthesis (software) and a newly formed international division in the Netherlands.
The Responsive Group will form part of Capital Appreciation’s software division and report through to Synthesis.
Responsive founders and directors Andrew McElroy, Marsh Middleton and Brandon Fairweather state: “We are excited to join a group that has such a strong culture of innovation, an extensive client base and a healthy balance sheet from which to expand.
“We look forward to adding our unique strength to the group to create the best experiences for existing and new clients. We also see synergies in creating web and mobile products that delight users by following a design thinking approach and expertly implementing the best technology solutions.”
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