JSE-listed fintech group Capital Appreciation has announced that it has bought the Responsive Technology group for R48.7-million in a move that grows its portfolio of assets.
The acquisition includes three South African companies:
- Responsive Tech (100%)
- Responsive Digital Proprietary (100%)
- Rethink Digital Solutions (71%)
Responsive Technology, which was established a decade ago, is a digital solutions group that designs and develops applications for clients in South Africa, the US, Europe and the UK. Clients include Capitec, Nedbank and Old Mutual.
As part of the transaction, Capital Appreciation will subscribe for 20% of the issued shares in Regal Digital, a related-party technology company in the Netherlands, for a cash investment of €500 000 (R8.6-million).
Regal Digital is the operating company of Firelava, a consulting services business focusing on Web3 technologies, non-refundable tokens and blockchain solutions, Google Firebase, and cloud specialist services, as well as solutions architecture consulting.
Capital Appreciation co-CEO Bradley Sacks said in a statement: “Responsive fits well with our investment philosophy of investing in established, asset-light growth companies that deliver innovative and disruptive fintech solutions to mainly institutional clients.”
Responsive Technology will form part of Capital Appreciation’s software division and report into its Synthesis Software Technologies business.
Capital Appreciation shares were trading up 5.8% on 4.10pm on Wednesday after news of the acquisition was announced. In the past year, the shares have climbed by 65.4%. The group has a market capitalisation of R2.3-billion. – © 2022 NewsCentral Media