ARC Financial Services, a sister company of billionaire Patrice Motsepe’s African Rainbow Capital, has gone into agreements to acquire Crossfin Technology Holdings, as part of a combination of associations of businesses led by Ethos Mid-Market Find I, in a R1.5 billion transaction. With R1.5 billion transactions, African Rainbow Capital aims to strengthen the Fintech industry.
ARC FSH is going to acquire 37.33% of Crossfin Technology Holdings via the association, for a consideration of R600 million which is going to assume a combination of acquisitive capital from the already existing growth capital and shareholders for identified transactions.
The group is said to commit to providing acquisition and growth capital in a R1.5 billion business transaction. “The transaction includes the provision of acquisition and growth capital to enable Crossfin to deliver on its vision of investing in fintech solutions in selected markets on the African continent.”, the group said.
Crossfin said it supports companies that focus on solving particular everyday pain points that are not well covered by existing products in the market. It works in industries that are set to grain from the growing trend towards the usage of digital payments over cash.
“Crossfin’s portfolio and healthy partner ecosystem create exciting opportunities to integrate a broad suite of financial products and services to support local merchants and consumers on multiple levels”, Crossfin said.
Presently, Crossfin’s portfolio processes more than 134 million cards and 20 million mobile-enabled payment transactions annually, with an aggregate value of more than R79 billion.
African Rainbow Financial Services had said, “The transaction strongly positions Crossfin to leverage new technologies as they emerge”, Adding that the deal is in sync with Arc Investments’ goals so as to establish an ecosystem of financial technology-related businesses.