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Ethos exits CQS to Adapt IT in R217mln deal

In the second deal in a week, South Africa’s Ethos Private Equity announced the completion of the sale of its stake in CQS Technology Holdings to JSE-listed Adapt IT. Ethos originally invested in the niche technology company though its first fund in 2008 in a transaction that facilitated the introduction of empowerment partner Kapela Investments. Kapela and CQS Management become shareholders in Adapt IT.

Adapt IT agreed to pay sellers R217 million (or $13 million at today’s exchange rates) in a cash and share deal when the deal was first announced in October last year. The disposal gives Ethos a full exit from its investment. No additional financial details of the transaction were disclosed.

CQS provides niche audit, financial and risk management software services to financial services professionals, corporates and the public sector. The company, which operates through both distributor and direct networks, has an extensive client base that is growing significantly, both in South Africa and the rest of the continent.

Java Capital provided corporate and legal advice to all seller on the deal, while Bowman Gilfillan advised Ethos separately on other legal matters.

2 Trackbacks & Pingbacks

  1. Weekly Wrap, February 1st, 2016; Ethos, Verod, Kinnevik and others make private capital news | Africa Capital Digest
  2. Weekly Wrap, February 1st, 2016; Ethos, Verod, Kinnevik and others make private capital news last week | Africa Capital Digest

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