Sanlam Private Equity buys controlling stake in Q LINK
Sanlam Private Equity (SPE) today announced that it had acquired a controlling interest in payment solutions provider Q LINK. Q LINK provides payment application software that manages deductions in both the payroll and bank collection streams. The Emolument Attachment Order solution has saved South African public sector employees more than ZAR300 million (c. $19.3 million) in invalid and over-deductions from court orders since 2014.
SPE made the acquisition through its new third-party private equity fund, SPE Mid-Market Fund, one of three impact-focused funds in the Sanlam Investor Legacy Range launched in 2020. The Q LINK acquisition follows that of Cavalier Group and Absolute Pets from the fund.
Q LINK is a preferred provider of payment application software to the South African insurance industry and other third-party benefit providers. It improves collection success rates while optimising costs. The concept of “affordability and control” ensures that only valid and affordable deductions are processed through employee payrolls. Currently, the company facilitates collections for over 30% of all recurring retail life insurance premiums in the country.
SPE agreed to acquire the shares from Apis Partners, a UK based private equity fund; Multiply Group, a local private investment firm; and other minority shareholders.
SPE managing partner Paul Moeketsi said Q LINK has a robust business model and has been the preferred payment collections partner for many insurance companies for over 20 years. The company services over 4.5 million employees, collecting ZAR4.5 billion (c. $290.1 million) in monthly premiums for over 133 clients, many in the insurance industry. “Together with the management team, we will identify and unlock new growth opportunities while providing access to our capital, commercial expertise in investing and attractive Black Economic Empowerment credentials.”
Q LINK founder and current chairman Henry Smith commented, “We are looking forward to working with a new strategic partner in SPE as we enter the next growth phase of our business. In addition, we are delighted to align with a commercial investor who understands the importance of Q LINK’s continued independence as a strategic payment collections partner for several insurance companies in South Africa.”
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