Convergence Partners and Stockdale Street have acquired 100% of e4 - a South African company that provides software as a service (SaaS) platforms to organisations operating in the financial services, retail and legal sectors - for an undisclosed amount.
e4 has an international footprint in Africa, Europe, the US and Australia. It also has offices in Johannesburg, Durban, Pretoria, Cape Town and Namibia, with satellite offices in Port Elizabeth, Bloemfontein, East London and Mpumalanga.
Convergence Partners, founded in 2006 by businessman Andile Ngcaba, is an investment management firm focused on the technology, media and telecommunications sector in Africa. Last month, the firm announced an investment into customer experience software company inQuba for an undisclosed amount.
Last year, Convergence Partners closed its CPI fund, which then had capital of over $200 million. Capital commitments came from institutions such as the Public Investment Corporation.
Other investors in the fund include the International Finance Corporation, European Investment Bank, Dutch Development Bank, Development Bank of Southern Africa, and the CDC Group.
Stockdale Street represents the Oppenheimer family's South African private equity portfolio. The South African family, worth billions of dollars, is one of the richest families in Africa.
Convergence Partners and Stockdale Street believe the investment will enable the e4 Group to accelerate growth through new product and services development, and further expand its geographic footprint.
Convergence Partners' investment will sit in its Communications Infrastructure Fund, which is focused on investing in ICT infrastructure in sub-Saharan Africa.
"The acquisition by Convergence Partners and Stockdale Street unlocks new opportunities for e4 and our clients in the financial services, retail and legal sectors," says Luis Casaleiro, CEO of e4.
"The investment in e4 is in our sweet spot, operating at the junction of the rapidly changing global technology environment in identity management and secure electronic document, data, payment processing and the emerging fintech space," says Brandon Doyle, CEO of Convergence Partners.
"The transaction also aligns well with our preferred model of investing in high quality companies with energetic management and a proven track record of innovation," he notes.
"e4 is a pioneer in the South African SaaS space, having successfully conceptualised, implemented and operated a number of digital solutions that offer significant value to its customer base," says Paul Salomon, partner at Stockdale Street.
"We look forward to partnering with management and Convergence Partners to assist e4 with its continued growth, enabling it to remain at the forefront of offering leading-edge, trusted electronic solutions and services," Salomon concludes.
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