Venture capital fund Archway 2 has acquired a 25% stake in local IT company, Business Edge Systems, for an undisclosed sum.
Established in 1990, Business Edge comprises an e-business division providing business process design, development and integration services across industry sectors, and an application products division that supplies packaged solutions to selected vertical niches. The solutions include foreign exchange and employee benefits.
Business Edge`s clients include Absa, Standard Bank, First National Bank, MTN, Investec, Liberty Life and Anglo Platinum as well as international partners RedMane Technologies and Worldgroup Consulting.
Commenting on the investment, Leonard Bruhns, Archway Venture Partner GM, says: "We have been impressed with the mature management team at Business Edge and their excellent track record since inception. Archway anticipates that Business Edge will continue to develop its business through both acquisitions and organic growth."
Rob Stansell, MD of Business Edge, says of the deal: "Archway`s focus on the IT sector brings us a valuable market perspective. Their team will assist us in objectively evaluating new business ventures and Archway can provide the capital and deal-making support to enable us to realise our growth aspirations.
"We found appealing Archway`s emphasis on preserving the culture and values of the companies they invest in - something that is critical in a skills-based business such as ours," says Stansell.
Archway is venture capital fund focusing on the IT industry. Its investment partners include Gensec NSA, Dimension Data, Standard Corporate & Merchant Bank, the Industrial Development Corporation and Metropolitan Life.
Archway 2 began its acquisition trail in July and Bruhns said at the time that Archway 2 had around R200 million in the fund and the market could expect acquisitions of between R3 million and R10 million per investment.
Related stories:
New VC fund begins acquisition spree
Share
