TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      State capture probe ends but South Africa remains ‘broken’ by corruption

      23 June 2022

      Vivica Group, formerly Vox, looks beyond ICT

      23 June 2022

      Protests break out at Eskom plants

      23 June 2022

      South Africa scraps public mask mandate

      23 June 2022

      Crypto is not too big to fail

      23 June 2022
    • World

      Crypto crash survivors could become ‘tomorrow’s Amazons’

      23 June 2022

      Tether to launch a stablecoin tied to the British pound

      22 June 2022

      Tech giants form metaverse standards body, without Apple

      22 June 2022

      There are still unresolved matters in Twitter deal, Musk says

      21 June 2022

      5G subscriptions to top one billion in 2022: Ericsson

      21 June 2022
    • In-depth

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022

      Everything Apple announced at WWDC – in less than 500 words

      7 June 2022

      Sheryl Sandberg’s ad empire leaves a complicated legacy

      2 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Fintech»Net1 gets green light for R3.7-billion Connect deal

    Net1 gets green light for R3.7-billion Connect deal

    Fintech By Duncan McLeod11 March 2022
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    JSE-listed Net1 UEPS Technologies has been given the regulatory green light for its acquisition of South African fintech company Connect Group in a deal worth R3.7-billion that it has described as “transformational”.

    Net1, which has its primary listing on the Nasdaq in New York, said it has received approvals from the South African, Botswanan and Namibian competition authorities for the transaction, which will see it acquire 100% of the shares and claims in Connect Group.

    Connect Group was founded in 2006 and provides fintech solutions to about 44 000 small, medium and micro enterprises in South Africa, many of which are in the informal sector.

    The company offers four main product lines: a prepaid value-added services platform branded Kazang; a digitised cash management platform called Cash Connect; a merchant lending platform branded Capital Connect; and merchant acquiring solutions called Kazang Pay and Card Connect.

    Though the Namibian and Botswanan competition regulators have attached no conditions to their approvals of the deal, South Africa’s Competition Commission has imposed various conditions, including that:

    • It must increase the spread of ownership by historically disadvantaged people, including workers, and invest in supplier and enterprise development;
    • Net1 is required to establish an employee share ownership scheme that complies with certain design principles for the benefit of the workers of the merged entity to receive a shareholding in Net1 equal in value to at least 3% of the issued shares in Net1.
    • If within 24 months of the implementation date of the transaction, Net1 generates a positive net profit for three consecutive quarters, the employee share scheme must be increased to 5% of the issued shares in Net1.

    “The final structure of the employee share option plan is contingent on Net1 shareholder approval and relevant regulatory and governance approvals,” Net1 said.

    “Net1 has previously communicated its vision to transform into the leading fintech platform for underserved consumers and merchants in South Africa. The acquisition of the Connect Group significantly advances that vision and is transformational for Net1,” the company said on Friday.  – © 2022 NewsCentral Media

    Connect Group Net1 Net1 UEPS Technologies
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleRussia opens criminal case against Meta Platforms
    Next Article EOH in deal to offload more assets as it moves to cut debt

    Related Posts

    State capture probe ends but South Africa remains ‘broken’ by corruption

    23 June 2022

    Vivica Group, formerly Vox, looks beyond ICT

    23 June 2022

    Protests break out at Eskom plants

    23 June 2022
    Add A Comment

    Comments are closed.

    Promoted

    Huawei P50 now available for pre-order in South Africa

    23 June 2022

    Calabrio paves way for SA’s cloud contact centre WFO journey alongside AWS

    23 June 2022

    More than card machines – iKhokha diversifies to reach more SMEs

    22 June 2022
    Opinion

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.