Nedcor has acquired 26.2% of smart card company Net 1 Applied Technology Holdings (Aplitec) for R114 million. Nedcor has the option to increase the stake to 50% within two years.
The deal gives Nedcor access to Aplitec smart card technology and the companies have also entered into a supply agreement worth R100 million to provide Nedcor with point-of-sale infrastructure.
Nedcor will appoint two new directors to the Aplitec board. Nedcor acquired its initial shareholding at R2 per share through a combination of the current shareholders and a new share issue.
"The deal gives Nedcor access to Aplitec`s smart card technology which can be applied to all banking transactions and is especially suited to supplying secure, low-cost financial services to SA`s unbanked and underserved markets," says Barry Hore, Nedcor executive director of technology and operations.
Nedcor`s Peoples Bank, which is to be merged with FBC Fidelity Bank creating the largest empowerment bank focusing on the underserved market, will extensively use Aplitec`s smart card technology.
Nedcor says the investment in Aplitec also gives the bank an interest in the informal payments industry in the unbanked market. More than 750 000 pensioners in KwaZulu-Natal and the North West Province receive their monthly pensions on Aplitec smart cards, and Aplitec`s salaries and wages system is being rolled out in rural and industrial areas.
"Nedcor`s investment is a boost for Aplitec and is a vote of confidence in our smart card technology, business products, and local and international growth strategies," says Serge Belamant, Aplitec chief executive.
"Having Nedcor as a partner allows Aplitec to focus on broadening the use of smart cards as an offline, secure and affordable facilitator of financial transactions, while Nedcor fulfils the banking role," says Belamant.
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