An investment consortium has bought a 30% stake in property management software company MDA Property Systems, for an undisclosed sum.
The investment by the consortium, headed by private equity firm Targe Capital, is expected to aid the company to grow, because the investment group will provide MDA with access to intellectual capital.
MDA founder and MD Deon Keet says the deal isn't only about a financial investment, as the partners were chosen because they can add value. He says there are already a number of initiatives under way that will take MDA “to the next level”.
The company, founded in 1990, owns proprietary software that is used by many JSE-listed funds and other large property managers in Southern Africa and the Middle East. It has 2 350 licensed users, and focuses on providing software and services to mid-to-upper-range commercial, residential and sectional title property managers.
“We are confident that Targe will add another strategic dimension to this well-established and highly-respected company,” notes Keet.
Growth opportunities
Targe Capital is an investor of proprietary and syndicated investor funds aimed at owner-managed businesses in a wide range of industries. The company was recently established by Greg Fury, former Allan Gray COO, and Gary Macdonald, who was previously with RMB Corvest.
Macdonald, now a director at Targe Capital, says the private equity company was attracted to MDA on the strength of its client base, proven software and strong growth prospects in SA, Africa and the Middle East.
MDA has sold software licences in Dubai, Abu Dhabi, Jordan and Bahrain, and is negotiating in other Middle Eastern countries.
“Targe Capital believes that MDA is also well positioned to increase its market share in all sectors of the SA property market,” says Macdonald.
Fury adds: “Targe Capital anticipates being closely involved in a variety of exciting corporate activity prospects that will grow the value of MDA.”
Macdonald and Fury have been appointed as non-executive directors of MDA.
Share