On 3 February 2018, Nigeria's Zinox Group announced, through THISDAY, that it had acquired e-commerce company, Konga. Konga was founded by Sim Shagaya in 2012 and has gone on to become one of Nigeria's large e-commerce companies.
According to Zinox, the deal has been months in the making as they had been involved in numerous strategic negotiations with Konga investors Naspers and AB Kinnevik. The acquisition, according to Zinox, includes the purchasing of all of Konga's assets, i.e. Konga.com, KOS Express and KongaPay.
Although the terms, conditions and financial details of the deal were not made public by either party involved in the transaction, nor have they been made available by Konga's investors, several media outlets have gone on to speculate and report that Zinox acquired Konga for $10 million. A number which Zinox has denied.
"It was a straight cash for equity deal. [The] Final sum is currently undisclosed but the figure of $10 million being bandied in some quarters is at best unsubstantiated," explained Gideon Ayogu, Head of Corporate Communications at Zinox to iAfrikan.
Ayogu added that as part of the acquisition, senior staff and executives at Konga will be staying behind.
"The deal signifies a 100% equity acquisition of Konga but we reserved 1% equity for a minority shareholder. The previous majority shareholders, Naspers and AB Kinnevik, were bought out," said Ayogu.
Zinox is not new to the e-commerce sector as 12 years ago they launched one of the first e-commerce businesses in Nigeria at the time, BuyRightAfrica.com. Zinox has bigger plans for Konga.
"Long-term plan is to see Konga fully established in other Afrikan capitals," concluded Ayogu.