JSE-listed tech group EOH is offloading more assets as it continues with its stated strategic intent of improving liquidity and reducing debt.
EOH informed investors today that its wholly-owned subsidiary EOH Mthombo has entered into a share purchase agreement to dispose of 100% of its shares in the Information Services companies to Bachique 842 Proprietary Limited.
The deal is subject to EOH Shareholder approval.
EOH added that this disposal forms part of creating a fit-for-purpose capital structure that is adequately supported by its cashflows.
Bachique 842 is a wholly-owned subsidiary of LR Africa Holdings Limited. LR Africa Holdings Limited is advised by Lightrock, a global private equity platform that backs purpose-driven entrepreneurs tackling the world’s biggest challenges.
Since 2007, Lightrock and its predecessors in title have invested in companies that pursue scalable and tech-driven business models around the key impact themes of people, planet, and productivity/tech for good. Bachique 842 has acquired Information Services for the base purchase price of R417 000 000, based on an Enterprise value of R445 000 000.
Information Services provides credit checks, background screening and big data, analytics and technology in South Africa. The Information Services platform provides access to a rich pool of data across its business units, allowing it to provide unique insights to clients.
Information Services has evolved over the years from a data provider to a holistic solution provider for risk mitigation and data analysis tools, with each division focusing on a specific sub-set of data-driven solutions:
- HTCSA: Data engineering and risk management
- MIE: Background screening and vetting
- XDS: Credit information bureau
- Zenaptix: Software development covering various aspects of big data
“This transaction is in line with our strategy of disposing of a targeted group of IP companies as part of the Group’s deleveraging processes and represents a significant milestone in the implementation of these processes,” said EOH Group CEO, Stephen van Coller.
“The achievement of a more sustainable capital structure will allow the Group flexibility to execute on its long-term growth strategy. I’d like to express my thanks to the Information Services team and wish them the very best in their future endeavours with Lightrock.
“I believe that Lightrock is the right partner to unlock Information Services’ full potential, enabling both future growth and international expansion in its operations for the company and its people.”