Sanlam Investment Holdings (SIH), a subsidiary of Sanlam Limited, has entered into agreements to acquire a 30% equity stake in EasyEquities. The transaction will be concluded once certain conditions are met including getting approval from South Africa's Competition Comission.
EasyEquities is a South African FinTech Startup looking to make investing in the stock market easy. It does this by by reducing the fees associated with share trading to enable people with as little as less than a $1 (R10) to invest in the stock market.
"SIH will acquire a 30% shareholding ("the Transaction Shares") in EasyEquities for a consideration of R100 million," said Purple Group, the owners of EasyEquities in a statement to shareholders.
The transaction, should it go through, will value EasyEquities at approximately $24 million once concluded. The FinTech startup was launched during October 2014 and has, to date, been funded by the earnings of the other business units operating within the Purple Group and through funding procured by the Purple Group through small capital raisings.
“The EasyEquities transaction with Sanlam Investments provides our fintech winner with added capital, skills and the ability to continue on the path we’re on – aggressive growth in client numbers, products on the site for client benefit and a way for all South Africans to access the financial markets – in South Africa and excitingly also in the US. We also look forward to announcing our international growth plans where the collaboration with Sanlam Investments provides invaluable insights, guidance and access to various jurisdictions,” said Says Charles Savage, CEO at Purple Group,
EasyEquities has experieneed rapid growth from its launch with its net asset value EasyEquities at 30 April 2017 $8,6 million (R116.6 million).