Horizon Equity Partners has sold its investment in local portfolio firm Peresys, to Australian market technology provider IRESS, for R375 million.
Peresys is a technology services provider to the South African financial sector. The company specialises in building and running financial information exchange-enabled connected trading communities.
The sale of Horizon's investment in Peresys marks the full realisation of Horizon's TechVentures Fund, which began investing in 2001 with R150 million in committed capital. Peresys is the third company in Horizon's TechVentures fund to be acquired by a listed international company, following in the footsteps of Prism and Medikredit.
With the acquisition of Peresys, IRESS has announced the significant expansion of its activities in SA.
Andrew Walsh, MD of IRESS, says: “For some time, IRESS has assessed the opportunity and timing to expand our presence in SA from wealth management and introduce our financial market services such as order execution, trading, and market data. The combined IRESS and Peresys service offering is anticipated to grow revenues while leveraging the largely fixed cost base.”
According to IRESS, the initial focus will be on immediate product opportunities based around introducing IRESS components, specifically: retail online trading, EMS, portfolio management, and market data. “Beyond this, we will review technology opportunities based on demand and opportunity,” notes Walsh.
Ashley Mendelowitz, CEO of Peresys, adds: “We will continue to do the things that have made us an integral part of the South African financial markets over the past decade, ultimately ensuring Peresys remains the material connection point for the international trading community to SA and, in time, the rest of Africa.”
Richard Flett, MD of Horizon, says this deal is great for both companies. “It's a classic case of 'win-win' and vindicates our underlying investment thesis in the TechVentures fund, that SA can produce technology winners whose IP [intellectual property], market position and management team are attractive to international acquirers.”
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