Transaction Capital is a non-deposit taking financial services group active in asset-backed lending, unsecured lending, credit services and payment services.
Actis will become Paycorp’s majority shareholder, while founder and CEO, Steven Kark and his executive team, will become co-investors.
The transaction includes the entire issued share capital of Paycorp and its subsidiaries: ATM Solutions, DrawCard and EFTPOS.
ATM Solutions owns and operates almost 5,000 ATMs across southern Africa, DrawCard is a deployer of Visa-certified card programmes, and EFTPOS provides merchant debit and credit card acceptance solutions.
Paycorp has been a wholly-owned subsidiary of Transaction Capital since 2006. Kark, a co-founder of Transaction Capital said: “Being part of Transaction Capital and working closely with CEO Mark Lamberti has enhanced Paycorp’s strategic focus, leadership development and corporate governance. We’re equally appreciative of Mark’s recognition that Actis can unlock further value for Paycorp.”
“Our core executive team has been integral to this transaction and remains unchanged. Actis’s investment in Paycorp is a strategic development that will give us valuable alliances with other global payment players,” Kark said.
Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$5.2 billion funds under management.
The firm says it is strongly committed to Africa with some US$1.5 billion currently invested in African businesses.
The group’s investment in Paycorp will be its fifth in the payments industry in three years.
The transaction is subject to certain conditions being fulfilled over the next few weeks and implementation is expected to be complete by the end of 2013.