EOH has entered into a share purchase agreement for the sale of Sybrin to a consortium group comprising of One Thousand & One Voices Management (Mauritius) (1K1V) and Crossfin Technology Holdings (CFTH) and their black economic empowerment partners led by Isaac Mophatlane, (together the Consortium) for a cash consideration of R334-million.

The Base Purchase Price, after adjusting for net debt, non-operating assets and working capital, equates to an enterprise value (EV) of R410-million implying an EV/normalised EBITDA multiple of 5,3x on Sybrin’s 31 July 2020 normalised EBITDA of R78-million.

1K1V is a private equity fund backed exclusively by industry-leading families from around the globe while CFTH is an investment holding company that offers investors a blended exposure to technology investments in Fintech. Established in 1991, Sybrin provides bespoke solutions to the banking, financial services and insurance sectors as well as central governments. Utilising its proprietary low-code platform, Sybrin specialises in developing, implementing and integrating end-to-end systems and solutions.

EOH CEO Stephen van Coller says: “EOH acquired Sybrin in 2013 as it was a great fit with the EOH strategy at the time, which included a stronger vertical focus and the opportunity for African expansion. We are excited for the new opportunities that this disposal brings for Sybrin.

“The sale of Sybrin is in line with EOH’s stated strategic goals of deleveraging the balance sheet as well as refining the business model. Over the past two years, EOH has been focused on establishing an appropriate capital structure. This transaction allows Sybrin to unlock its full potential and brings EOH a step further towards building the “EOH of the Future” by reorganising the group and strengthening EOH’s capital structure.”

Sybrin CEO Marius Maree comments: “Sybrin has benefitted from being part of the EOH journey and is now at a stage where it is well positioned to leverage its proven track record and significantly scale its innovative technology across several geographies and as such is looking forward to starting the next growth chapter with its new partners.”

The transaction represents a milestone in EOH’s deleveraging plan and the proceeds of the transaction, net of costs, will primarily be applied to reduce debt with the remainder utilised for working capital requirements.

Van Coller concludes: “We are confident that Sybrin will be enabled to further grow its digital assets under the new management and wish them the best for their future.”