SA Fintech Group Goes on a $3-Million Buying Spree

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South African fintech group, Capital Appreciation Limited, has announced an expansion of its portfolio of innovative technology companies.

The Group says it has acquired the Responsive Technology group for the purchase price of R48.68-million ($3.015-million). The acquisition includes three South African companies:

  • Responsive Tech Proprietary Limited (100%)
  • Responsive Digital Proprietary Limited (100%)
  • Rethink Digital Solutions Proprietary Limited (71%).

The Responsive Technology Group

Responsive is a digital solutions group that designs and develops digital applications with clients across South Africa, the USA, Europe and the United Kingdom.

The group has a proven, 10-year track record of delivering complex digital transformation projects, web and mobile apps, as well as technology products for leading South African and international blue-chip clients. These companies have included Brambles Limited (CHEP), Capitec, Coronation, Experian, MoneyGram, Nedbank and Old Mutual.

As digital product specialists, Responsive assists its clients in developing fast, secure and scalable applications in the cloud, that get to market quicker, drive results and unlock business value. Its unique approach has led to the Group becoming a preferred supplier amongst financial institutions and has made it a natural fit for the Capital Appreciation Group.

Details About the Transaction

As part of the transaction, Capital Appreciation will subscribe for 20% of the issued shares in Regal Digital B.V., a related party technology company located in the Netherlands, for a cash investment of 500,000 euros (around $555.339.50).

Regal Digital is the operating company of Firelava, a consulting services business focusing on Web 3.0 technologies, non-fungible token (NFT) and Blockchain solutions, Google Firebase and cloud specialist services as well as solution architecture consultation.

Regal Digital has an 80% shareholding in Flamelink B.V., a ‘software-as-a-service’ (SaaS) solution offering a headless Content Management System (CMS) for Google’s Firebase and is currently the de facto Firebase CMS with the most feature-rich offering in the market.

“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. We also look forward to exploring the potential for synergistic opportunities with existing operating units,” noted Capital Appreciation Joint CEO, Bradley Sacks.

The Responsive Group will form part of Capital Appreciation’s Software division and report through to Synthesis.

Edited by Luis Monzon
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