JSE-listed speciality finance company Capital Appreciation has acquired financial technology firm Synthesis for R132,1m.
Synthesis is a specialised fintech company that provides software development, consulting and integration services to financial institutions. Clients include Investec, Absa, Standard Bank, Capitec and Nedbank.
Synthesis will remain independent, operating as a wholly-owned subsidiary of Capital Appreciation. It will continue to grow as a specialised fintech provider with access to capital and other resources within Capital Appreciation to further invest in the business and expand its offerings.
“This acquisition is in line with Capital Appreciation’s value-creation objectives and its strategy of providing established and emerging financial services companies with fintech services,” said Capital Appreciate joint CEO Bradley Sacks.
Sacks said Synthesis is the first Amazon Web Services (AWS) consulting partner to reach “advanced partner” status in the Africa and Middle East region. The company uses the AWS cloud to help financial institutions become “cloud ready, to execute mass migrations, to harness the benefits of big data analytics and to extract the cost savings and regulatory benefits of compliance”.
Synthesis, which was founded in 1997, offers specialised software development, consulting and integration services as well as technology-based product solutions to banking and financial institutions in South Africa and other emerging markets. Its focus is on the “biggest impact areas for fintech”: cloud, digital channels, blockchain and big data. In addition, it focuses on emerging fields such as artificial intelligence and machine learning.
Capital Appreciation was established originally as a special purpose acquisition company, or SPAC, that listed on the JSE main board in October 2015.
“Now that Capital Appreciation has concluded its initial acquisitions, it is no longer an SPAC, but rather a full-fledged listed entity on the JSE. Capital Appreciation intends to continue to invest in and acquire companies that complement its fintech strategy,” it said in a statement. — © 2017 NewsCentral Media
