Etion announces new equity partner
Conexus Capital Growth Fund invests R27 million to boost innovation in digital security.
Etion (JSE: ETO) today announced it has acquired a new equity partner in Conexus Capital Growth Fund (Conexus). Conexus is represented by Clive Douglas Investments. Conexus has taken a R27 million stake in the Alt-X listed digital solutions company through a cash purchase of 70 000 000 ordinary shares. The shares represent 14.16% of the issued share capital of Etion, prior to the general issue, and 12.4% after the issue of the shares.
The deal is intended to strengthen Etion's thrust into cutting-edge digital security innovation following its acquisition of cyber security specialist, LAWTrust, in June 2018. The acquisition happened alongside the group's rebranding and repositioning of its operational business divisions to be more operationally flexible and responsive to rapidly changing client needs.
LAWtrust has since been merged into Etion Secure, the operating unit responsible for developing and implementing security solutions in the Etion value chain.
"We consider the new investment from Conexus to be a firm signal of support for Etion's transition to date and its growth plans for the future," said Group CEO Teddy Daka.
"Each of the underlying businesses in the Etion Group have significant organic growth opportunities that are at various stages of development and should come on book in the next two to four years," said Clive Douglas, CEO of Clive Douglas Investments.
"The Etion Group has acquired a number of interesting businesses over the past few years all led by seasoned and successful entrepreneurs. The next phase of the group will focus on integrating the four divisions and entrenching itself with its customers by offering bespoke products and high levels of service. Partnering with successful entrepreneurs is at the heart of Conexus' business model and this has been demonstrated in many different transactions over the past 10 years. Conexus will be appointing a representative to the board of directors, including observer rights, to ensure active management of the investment on behalf of its investors," he noted.