JSE-listed Capital Appreciation has acquired 100% of Synthesis Software Technologies for R132.1 million.
Synthesis is a specialised financial technology company that provides software development, consulting and integration services to financial institutions. Current clients include blue chip financial organisations such as Investec, Absa, Standard Bank, Capitec and Nedbank.
Post-acquisition, Synthesis will remain independent, operating as a wholly-owned subsidiary of Capital Appreciation. Synthesis will continue to grow as a specialised financial technology provider with access to capital and other resources within Capital Appreciation to further invest in the business and expand its offerings.
"This acquisition is in line with Capital Appreciation's value creation objectives and its strategy of providing established and emerging financial services companies with fintech services," says Bradley Sacks, joint-CEO of Capital Appreciation.
"Synthesis is well positioned to capitalise on financial institutions' ongoing requirements to invest in innovation, increase customer reach, reduce operating costs and enhance regulatory compliance."
Synthesis, founded in 1997, focuses on the biggest impact areas for fintech, including cloud computing, digital channels, blockchain and big data. In addition, Synthesis addresses upcoming trends such as artificial intelligence and machine learning.
Capital Appreciation was initially established as a special purpose acquisition company (SPAC) that listed on the JSE on 16 October 2015. The organisation's intention was to acquire assets that provide a platform for future growth and expansion in SA, Africa and beyond.
After concluding its initial acquisitions, it is no longer a SPAC but rather a fully-fledged listed entity on the JSE and says it intends to continue to invest in and acquire companies that complement its fintech strategy.
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