Convergence Partners, the private equity firm focused on opportunities in Africa’s telecoms, media and technology sector, is backing South African start-up Snapt with $1 million. The capital injection will help the technology company, which opened an office in the USA 12 months ago, accelerate its plans to become a “major player the $6.5 billion US market”. No additional terms of the deal were disclosed.
Founded in 2012 with backing from 4Di Capital, Snapt, which is headquartered in Johannesburg, sells virtualized and cloud-based load balancing, web acceleration and security software to firms on a subscription basis, and, according to the firm’s website, now services 10,000 customers in 50 countries.
The investment is being housed in Convergence Partners’ first fund, the R1 billion Convergence Partners Fund I. Commenting on the deal Convergence Partners’ Chairman Andile Ngcaba said, “Load balancing in the network infrastructure and server environment is what differentiates successful companies in the digital domain – and Snapt’s technology solutions give its customers this competitive edge. We are proud to be supporting a leading global tech player like Snapt.”
The deal is the latest transaction for Convergence Partners in 2016 which also made a growth capital investment in inQuba, a managed customer experience software platform in March and acquired South African technology company e4 in April in partnership with Stockdale Street, the investment firm which represents the Oppenheimer family’s private equity interests.