About 250 jobs are to be created in Cape Town as the result of a strategic alliance between London-listed AFA Systems and London Bridge Software Holdings.
The jobs are to be created after London Bridge moves its offshore development office from London to Cape Town.
The companies say the strategic alliance was formed in light of their complementary product offerings to the banking sector, as well as a common objective to minimise development costs. The alliance includes a reseller agreement and an infrastructure agreement.
AFA Systems is a global provider of software solutions for the banking and asset management industries, while London Bridge Software Holdings is a global supplier of customer interaction software to the retail financial sector.
The reseller agreement will enable London Bridge to sell AFA`s treasury and asset management solutions and is part of AFA`s strategy to increase its sales by widening its distribution channels.
The infrastructure agreement will allow London Bridge to use AFA`s facilities and infrastructure to create its own low-cost offshore development centre in SA. AFA will facilitate the start and operation of the facility in Cape Town.
AFA has a Cape Town office, in addition to offices in Hong Kong and Belfast.
Its more than 40 customers in SA include Metropolitan Life, RMB Asset Management, Investec, Oasis Asset Management and Coronation Asset Management.
London Bridge has agreed to acquire 8.2% of the enlarged issued share capital of AFA as part of a firm placing by AFA, through which the company is expected to raise about lb1.8 million net of expenses at a price of 17p a share.
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