Sale of Paycorp to Actis with executive co-investment
7 August 2013
In a transaction worth approximately R937 million, global private equity firm, Actis, today announced its acquisition from Transaction Capital Limited of Paycorp Holdings (Pty) Ltd, one of South Africa’s leading independent payments group. Actis will become Paycorp’s majority shareholder, while founder and CEO, Steven Kark and his executive team, will become co-investors.
The transaction includes the entire issued share capital of Paycorp and its subsidiaries: ATM Solutions, DrawCard and EFTPOS. ATM Solutions owns and operates almost 5 000 ATMs across southern Africa, DrawCard is an award-winning deployer of Visa-certified card programmes, and EFTPOS provides merchant debit and credit card acceptance solutions.
Paycorp has been a wholly-owned subsidiary of Transaction Capital since 2006. Kark, a co-founder of Transaction Capital said he was grateful for the group’s part in Paycorp’s development “Being part of Transaction Capital and working closely with CEO Mark Lamberti has enhanced Paycorp’s strategic focus, leadership development and corporate governance. We’re equally appreciative of Mark’s recognition that Actis can unlock further value for Paycorp.”
Commenting on the transaction Kark said: “Our core executive team has been integral to this transaction and remains unchanged. Actis’s investment in Paycorp is a strategic development that will give us valuable alliances with other global payment players. We see great potential to leverage insights and expertise from other emerging markets and extend our footprint even further afield. With a private equity firm such as Actis backing Paycorp, we are confident that we will maintain our leadership position in the market and our strong relationships with our clients and banking partners.”
Actis’s investment in Paycorp will be its fifth in the payments industry in three years. With a proven track record of building value across Africa and the Middle East, Actis is a natural partner to support Paycorp through the next phase of its growth.
Natalie Kolbe, Partner in the Actis Johannesburg office said: “Actis is delighted to back accomplished entrepreneur Steven Kark and his team in remaining at the forefront of providing independent payments solutions. We look forward to a mutually beneficial partnership with Paycorp in building a stronger global payment’s presence.”
The transaction is subject to certain conditions being fulfilled over the next few weeks and we expect that implementation will complete by the end of 2013.