Fintech group Capital Appreciation has completed the R131,2-million acquisition of Dariel Solutions, the parent company of South African IT software services provider Dariel Software.

Capital Appreciation offers technology-based goods and services to businesses in a variety of industries, with a particular emphasis on the financial services industry.

Dariel is an engineering-focused IT architecture and software development company focused on large, mission-critical and complex business applications. With a 22-year track record of building well-architected systems, Dariel has a base of clients in fintech, banking and insurance, healthcare, telecommunications, hospitality, mining and manufacturing. Its client solutions include, among others, FX platforms, hospital administration systems, Know-your-client (KYC) and single-customer-view systems for some of South Africa’s foremost enterprises, as well as South Africa’s largest hotel management platform.

Dariel’s solutions are strongly cloud-based, with over 80% of its revenue related to the cloud in some form and with more than 110 certifications in AWS and Azure to match.

Dariel will form part of Capital Appreciation’s Software division. Malcolm Rabson, Gregory Vercellotti and Wayne Yan, the three founders of Dariel, will remain in the business and will continue to steer the Dariel team.

“Being part of a listed company with a strong balance sheet will provide growth capital and the financial firepower to pursue much larger projects, as well as exciting opportunities to access international markets,” according to the Dariel founders. “It will also grant Dariel ready access to Capital Appreciation’s specialised cloud, AI, ML and expert UX/UI capabilities, opening the scope for continued innovation and expansion of Dariel’s products and services.”

Michael Shapiro, executive director and head of Capital Appreciation software division, comments: “Capital Appreciation is delighted to welcome the talented team from Dariel to our Software group as we join forces to innovate in the software development arena. Collectively, we share a passion for problem-solving and emerging technology, and we are confident that we will create significant value for our customers, employees, partners, investors and other stakeholders.”