JSE-Listed Capital Appreciation Buys Dariel Solutions For R131 Million

Capital Appreciation, a FinTech group listed on the JSE, is buying Dariel Solutions, the holding company of Dariel Software, for a total consideration of R131,2 million.

The transaction will be settled through a combination of cash and the issuance of treasury shares.

Dariel will be part of Capital Appreciation’s software division.

“Dariel fits our model of investing in established, asset-light companies that deliver innovative and disruptive FinTech solutions to mainly institutional clients, with a culture and business ethos well-aligned with that of the Group,” Capital Appreciation CEO, Bradley Sacks, said.

 “We have experienced significant growth in our businesses due to accelerating digital transformation and the robust demand for cloud services, online applications, data intelligence, electronic payments and other innovative software solutions. 

“Dariel participates in many of these compelling areas of activity. In addition to its own growth prospects, we also see significant synergistic opportunities with our existing businesses”.

The acquisitions remain subject to the fulfilment of suspensive conditions, including approval from the Competition Commission.

 Dariel founders Malcolm Rabson, Gregory Vercellotti and Wayne Yan said: “By being part of a listed company with a proven growth strategy and the financial resources to support us, we will be able to expand our products and services and will be able to participate in projects for which we are sometimes overlooked. It also provides us with exciting opportunities to access international markets and gain access to a broad base of skills in cloud, Artificial Intelligence and Machine Learning, and specialist UX/UI capabilities”.

Founded in 2001, Dariel is a South African IT software services provider involved in providing software, consulting, development, implementation, and integration services, as well as maintenance and support, to enterprises in the healthcare, telecommunications, hospitality, mining and manufacturing sectors, with a particular focus and expertise in the financial services, insurance and “Fintech” sectors.

It also provides cloud services, enabling customers to innovate and test new platforms on the Cloud across the major Cloud platforms including Microsoft Azure, AWS and Google Cloud Platform.