RMB Corvest enters Q Link deal
RMB Corvest, a private equity business in the FirstRand Group, has acquired a minority shareholding in Summit Garnishee Solutions and co-funded an acquisition of transactional technology firm, Q Link from Business Connexion.
Listed ICT services provider, Business Connexion said in September that it had entered into an agreement to dispose of its entire interest in its Q Link business unit to Summit for R187.5 million.
Q Link implements rules and processes for payroll and debit order deductions. This service ensures the validity of such transactions and the affordability of these deductions for employees.
The acquisition would enable Summit to increase its scope of providing sustainable tools to facilitate the bringing of third party deductions to the payroll, while also protecting consumers and responsible industry providers.
The management at RMB Corvest have also acquired a shareholding in the company through this buyout. “The Group has solid, long term relationships with its customers and has the potential for significant growth into new products and markets” said Stephen Brown, director: RMB Corvest.
RMB Corvest says it participates predominantly in management buy-outs and buy-ins, leveraged buy-outs and BEE transactions involving businesses with a value of between R75 million and R1 billion.
As part of the transaction, RMB Corvest has also funded the introduction of a BEE shareholder, the Lily Investment Trust, a broad-based trust that operates and contributes towards orphanages, various schools for vulnerable and disadvantaged children, a teachers’ training college and early learning centres across the country.
By way of rationale for the disposal Business Connexion said: “Q Link has grown to the extent that its future vision and strategy requires greater alignment with the financial services sector. As a result, Q Link no longer forms part of the core business strategy of the Group and the board of directors of BCX opted to dispose of Q Link and realise value.”
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