Case Studies

WiGroup

Aggregation platform of mobile payment solutions in retail sector

  • WiGroup provides technology and software applications to facilitate transfer of value in cash, vouchers or coupons from the mobile device through retail channels
  • Venture Capital style investment
  • Co-invest with management – 51% held by Capital Eye
  • Conceptual to pre-commercialisation development
  • Driving strategic roll-out phase in 2012 having achieved full commercialisation and a break-even position before the end of 2011
  • Third party investment in WiGroup at the end of 2011 underpins WiGroup value in Capital Eye portfolio

 


UCS Solutions (Affinity Logic)

Software Solutions and SAP Support

  • Acquired Affinity Logic in 2003 for R40 million equity investment
  • Renamed UCS Solutions representing the initial retail services and solutions offering within UCS Group
  • Broadened customer base from one retailer to the broader retail market
  • Largest implementers of SAP enterprise software for retail in sub Saharan Africa
  • In 2007 realised value from the sale of the network communication business in the South African retail market to a major network infrastructure provider
  • In 2009 realised value from the sale of the enterprise SAP application consulting and implementation business with specific retail domain expertise to a global SAP consultancy listed on the Nasdaq
  • In 2011 realised value through the sale of the remaining application and hosting services to a leading IT services business
  • Aggregated proceeds realized on the UCS Solutions (Affinity Logic) investment, R215 million

 


Destiny Electronic Commerce - CSC

Secure payment solutions in sub-Saharan Africa

  • Acquired CSC Software into Destiny Electronic Commerce with management (30%) in 2008 for R100m.
  • Leverage of R55m from external bank and a further R35m of deferred vendor performance based purchase consideration
  • Funded equity participation of management.
  • Strengthened executive complement and appointed chief financial officer.
  • Broadened customer profile from banking to enterprise retail.
  • Placed payment devices in banking, retail, petroleum and hospitality sectors.
  • Business delivered full earn-out in first two years of investment and self funded deferred vendor purchase consideration payments
  • In 2011 the total proceeds realized on the sale of 100% of Destiny Electronic Commerce, ultimately to a US based Nasdaq listed business equated to R345m
  • As a consequence of the preceding sale of the business into a local SA listed entity but agreement to share in any upside receipt from the short term onward sale to the international party, Capital Eye ultimately received a total equity consideration from its initial 70% ownership of just over R201m

 


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