South Africa: Capitalworks announces new exit
Private equity manager Capitalworks announced the closing of the sale of its interest in IQbusiness, one of South Africa’s largest management and technology consulting firms, to Reunert ICT, a wholly owned subsidiary of JSE-listed Reunert Limited.
Since investing in the business in 2016, Capitalworks has actively worked alongside the management team and other shareholders, IQ Group Holdings and Tiso Investment Holdings, to realise the potential of IQbusiness through an active acquisition strategy that has seen the business add competencies in consumer research and managed services to the existing consulting and technology offering. IQbusiness generates revenues exceeding R1 billion ($52 million) from a team of over 1,000 consultants.
Shaun Frankish, principal at Capitalworks commented: “Capitalworks has been fortunate to have had the opportunity to partner with IQ Group Holdings, Tiso Investment Holdings, and the strong management team at IQbusiness in growing one of South Africa’s leading independent consulting businesses. The transaction is a further example of how active private equity partners can assist world class South African businesses with unlocking their growth potential. The transition of ownership to Reunert ICT alongside the management team, offers new opportunities for growth and we are pleased that the business will be able to benefit from the complementary offerings afforded by Reunert ICT through this next phase.”
Alan Dickson, Reunert’s group CEO remarked, “The acquisition of IQbusiness supports Reunert’s ICT growth strategy and enhances our strategic vision of solving business challenges with innovative, high-tech solutions. The transaction adds meaningful scale to our systems and solutions integration cluster and brings access to a more diverse client base, thereby providing a platform for accelerated growth. Together with +OneX, IQbusiness adds complementarity and synergies that will result in Reunert ICT notably increasing our presence in the South African market.”
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