Another win for finance powerhouse buying South African company for R2.2 billion
The Competition Tribunal has unconditionally approved the merger, where Old Mutual Wealth will acquire 10X Investments from its sister company, Old Mutual Private Equity (OMPE), and DiGame Investments.
10X is a South African asset manager that provides investment and savings management services, such as retirement solutions and tax-free savings products.
Old Mutual Wealth is acquiring a majority stake in OMPE and DiGame Investments for R2.2 billion. As per the deal, 10X management will hold a large stake in the business.
OMPE and DiGame initially took a stake in 10X in 2014, with 10X pushing for the low-cost retirement savings market in South Africa.
“Our thesis was to move the needle on retirement outcomes by lowering fees, simplifying choices and using technology at scale,” said Jacci Myburgh, Co-Head at Old Mutual Private Equity, when the deal was announced.
The business scaled incredibly quickly in the ten years after it was acquired by OMPE and DiGame, with assets under management rising to R68 billion.
The company services over 60,000 clients and has a market-leading position in net flows into passive products, ETFs, and innovative beta products.
10X also pushed into the direct-to-consumer market following its acquisition of CoreShares in December 2022.
“For Old Mutual, this strategic acquisition supports the competitive delivery of investment capability into the South Africa market, positioning the group as a major force in the rules-based passive investment market,” said CEO Jurie Strydom.
“We share their long-term vision and see this partnership as a way to expand access to quality investment solutions for a wider base of investors.”
10X will continue to operate under its current management teams and retain its independent structure and brand going forward.
10X will also work closely with Old Mutual Wealth, with management teams having already found multiple avenues to create immediate value.
As a result of the transaction, Old Mutual Limited will shift from joint to sole control of 10X. The tribunal’s approval comes shortly after the Competition Commission also gave the transaction the go-ahead.
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