World of Avatar has agreed to buy 90% of Stellenbosch-based social messaging service MXit for an undisclosed amount.
World of Avatar, headed by technology entrepreneur Alan Knott-Craig Jnr, will buy out current shareholders MIH Holdings - a Naspers subsidiary - and MXit founder Herman Heunis, who will no longer be involved with the company. The balance of MXit, 10% held in a staff trust established by Heunis in 2005, will remain where it is.
MXit has more than 43 million registered user accounts in over 120 countries, and is Africa's largest mobile social network. It was founded in 2005 and the local operation has been profitable since September 2006. The international operation is still in its funding phase.
After the deal is wrapped up, Knott-Craig will become its new CEO and Heunis will take a six-month sabbatical before deciding on his plans for the future.
“Creating and building MXit has been an enormously interesting journey for me, and I have had a lot of fun, but it is time to inject new and young energy into the company, and I believe that Alan and his team will do a superb job,” says Heunis.
Knott-Craig says: “In the short-term, we want MXit to maintain and grow its position as the largest mobile social network in Africa. This means a focus on consolidating and strengthening the core of the business before we move to implement the long- term strategy.”
Nothing fundamental will change for the first one to three months while World of Avatar studies the business, after which it will make further announcements.
No other management changes are planned and World of Avatar does not intend to retrench any staff. Dave Weber will become the COO.
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