Sanlam to inject R100m into EasyEquities as it plans to buy 30% stake in fintech firm | Fin24
 
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Sanlam to inject R100m into EasyEquities as it plans to buy 30% stake in fintech firm

Aug 14 2017 21:05
Matthew le Cordeur

Cape Town - Sanlam Investment Holdings plans to acquire a 30% stake in low-cost investment platform EasyEquities from the Purple Group for R100m, it was announced on Monday.

“This is in a joint pursuit of growing clients’ wealth, making it easier for new clients to open an investment account and access the investment markets,” the two firms said in a media statement on Monday.

The value of the deal was announced in a SENS statement on Monday. “Ultimately, the purchase consideration will … capitalise EasyEquities with R100m”.  

The transaction is subject to the fulfilment or waiver of certain conditions precedent, including the approval of the Competition Commission, they said.

The deal will further efforts by Sanlam Investments, a subsidiary of Sanlam Limited, and EasyEquities to make it easier for investors to be able to save by facilitating easier access to investments, they said.

EasyEquities launched in October 2014 and was 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 firm said.

“The rapid growth of EasyEquities has necessitated the need to seek out additional funding from a strategic partner that brings with it the necessary capital to fund the growth and development of the platform over the next 24 to 36 months.

“In addition to capital, Sanlam Investments was identified on the basis that it would broaden market access through established distribution channels both locally and abroad,” it said.

sanlam  |  easyequities
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