The year 2021 was not all about funding and investments in Africa. There were also African acquisitions aka ‘afriquisition’. As long as you have a solid balance sheet that guarantees liquidity, a business can seamlessly acquire another. Besides finances, there are other reasons for acquisitions including diversifying into other verticals, getting a dominant market share by acquiring a competitor, taking controlling shares and also for expansion. Ultimately, the ultimate objective is to achieve rapid growth within a short period of time.
In Africa, there has been quite a number of acquisitions which are closely associated with some of the reasons earlier mentioned. Innovation-village highlights the top 10 afriquisitions in 2021.
Equinix Acquires MainOne for $320 Million as it Plans Expansion into Africa
The acquisition of MainOne probably came as a surprise to many who believed that it is the leading West African data center and connectivity solutions provider with no strong competition, with presence in Nigeria, Ghana, and Côte d’Ivoire. So it should not be acquired. But the founder, Funmi Opeke had other ideas, She sold her firm in a cash deal that is expected to close in Q1 of 2022, subject to the satisfaction of customary closing conditions including the requisite regulatory approvals. Global digital infrastructure company, Equinix bought MainOne for $320 million.
Founded by Funke Opeke in 2010, MainOne has enabled connectivity for the business community of Nigeria and now has digital infrastructure assets including three operational data centers, with an additional facility under construction expected to open in Q1 2022. Upon closing, these facilities will add more than 64,000 gross square feet of space to Platform Equinix, with 570,000 square feet of land for future expansions. MainOne owns and operates a subsea network from Nigeria to Portugal, as well as 1,200 kilometers of reliable terrestrial fiber network across southern Nigeria.
Ketron Investment Limited Acquires Shoprite Nigeria
Shoprite Nigeria is one of the biggest retail stores in Nigeria. Since its launch in Lagos in December 2005, It has expanded to more than 25 retail stores across Nigeria, including some of the largest in West Africa. Its supply chain includes more than 300 leading Nigerian suppliers, and boasts small businesses and farmers among its partners and suppliers. Well the parent company-Shoprite South Africa decided to divest from Shoprite Nigeria to cut cost and focus investment in South African operations. Other reasons include profit repatriation and naira fluctuations. The divestment by Shoprite International is also in line with its strategy to change from an ownership model to a franchise model.
If you say that Ketron Investment Limited, a Nigerian company owned by a group of reputable institutional investors led by Persianas Investment Limited came to the rescue of Shoprite Nigeria, you won’t be wrong. This change in ownership has already received the approval of the Nigerian regulator, the Federal Competition and Consumer Protection Commission (FCCPC). At least, we are happy that Shoprite is still in Nigeria!
Helium Health Acquires Meddy, a Middle East Doctor Booking Platform
Helium Health’s acquisition of Meddy was one of the biggest healthtech buy over in Africa in 2021. The acquisition of Meddy will help the Nigerian healthtech expand its range of services. It has merged meddy with its patient-provider and revenue cycle management platform under the name Helium Doc.
Founded by Adegoke Olubusi, Dimeji Sofowora and Tito Ovia in 2016, Helium Health offers a wide range of health services to include Electronic Medical Records (EMR) and hospital management solutions, HeliumPay, a billing and payments solution; a collateral-free loan product, HeliumCredit; patient-provider and revenue cycle management service HeliumDoc; and data analytics services. Helium Health has contracted over 500 healthcare facilities in Nigeria, Ghana, Senegal, Liberia, Kenya, and Uganda. These hospitals now treat over 300,000 patients every month with over 7,000 medical experts.
Meanwhile, Meddy currently serves more than 150 private clients within the UAE and Qatar. The company, backed with just $1.8 million in VC funding, has facilitated over 200,000 doctor appointments while enabling healthcare providers to generate approximately $130 million in billings. Meddy founders Haris Aghadi (CEO) and Abed Alkarim Khattab have joined Helium’s leadership team.
South Africa’s SweepSouth Acquires Egyptian Startup, Filkhedma
SweepSouth, Africa’s largest online home services platform backed by Naspers, acquired Egyptian startup, Filkhedma. Launched in 2014, SweepSouth is an online platform providing on-demand home cleaning services, operating across various South African cities.
Filkhedma is Egypt’s home services marketplace operating across three cities and serving tens of thousands of customers with cleaning, maintenance, and beauty services while empowering over 2 000 service providers through technology with consistent incomes and professional development. It was founded by Omar Ramadan also in 2014.
According to Naspers, the 100% acquisition almost doubles SweepSouth’s addressable market on the continent and paves the way for the launch of new services in South Africa, Egypt, Kenya and Nigeria. It notes that SweepSouth, will become one of a few start-ups operating in Africa’s four key tech markets with this acquisition placing the company in a strategically strong position to enter neighbouring geographies.
Autochek Acquires Cheki Kenya and Cheki Uganda
Autochek came like a thief in the night and ‘stole’ all the market share of Cars45 which was before now the leading cars marketplace in Nigeria. With ex-Cars45 top shots led by Etop Ikpe exiting to establish Autochek, it was quickly relegated to perhaps second place.
Later, Autochek and ROAM Africa (Ringier One Africa Media) entered into an agreement for Autochek to acquire automotive marketplaces Cheki Kenya and Cheki Uganda, as Autochek expands further into the African market. The deal will see Cheki Kenya and Uganda’s operations integrated with the wider Autochek operations. The move comes just one year after Autochek successfully acquired Cheki Nigeria and Ghana as part of its launch in West Africa.
Launched in 2020, and backed by notable investors such as TLcom Capital and 4DX Ventures, Autochek combines technology, underpinned by data analytics to deepen auto finance penetration across the continent. With a presence in Nigeria and Ghana, the company’s 360-degree automotive solution also provides a strong network of after-sales services that preserves and eases vehicle ownership experience across Africa.
African Rainbow Capital acquires fintech firm Crossfin for R1.5bn (US$93 million)
South African fintech investment firm, Crossfin Technology Holdings, was acquired by a consortium of investors, including Patrice Motsepe’s African Rainbow Capital (ARC), for R1.5 billion ($93m).
The consortium is led by Ethos’s Mid-Market Fund I and includes the founding Crossfin executive management team, EMMF I co-investors Ethos Artificial Intelligence Fund I, and empowerment investor ARC. Fairview Partners acted as financial advisors for the transaction, which will see the exit of founding investors Capital Eye Investments and the Multiply Group.
The transaction is one of the largest private equity-led investments in the fintech sector in South Africa to date and offers the consortium exposure to an industry that has and is expected to continue benefitting from, among others, the secular trends of digitalisation and proliferation of payments technologies. The new investors will provide growth capital to allow Crossfin to invest organically and pursue new opportunities across South Africa and the rest of Africa.
SA Fintech Group Adumo acquires payments startup SwitchPay
South Africa’s largest independent payment processors, Adumo, acquired SwitchPay, a South African startup providing alternative payment services to merchants and retailers, for an undisclosed amount.
Adumo services more than 50,000 active clients and 90,000 active card machines, processing more than R80-billion in transaction value across thirteen African countries. The company counts some of South Africa’s most trusted payment providers within its group structure, including Sureswipe, iKhokha, Innervation Pan African Payments, Innervation Rewards, Adumo Online, Humble Till, GAAP, and now SwitchPay.
SwitchPay is a fintech company that provides retailers with a digital platform to offer their customers alternative payment methods both in-store and online, including purpose-based lending, customised subscription models, and lay-by. The company’s platform supports third-party payment products through API integration, and its credit-related products aggregate multiple credit providers, including banks and other fintech.
Treepz Acquires Ghana’s Stabus and Uganda’s Ugabus
It has been a busy year for Treepz formerly Plentywaka, the Toronto-based shared mobility company acquired Ghanaian mobility startup Stabus. With this acquisition, Stabus would be renamed Treepz Ghana and Isidore Kpotufe became the Country Manager of Treepz Ghana and will be joined by the current team of Stabus.
Launched on November 1, 2019, in Accra, Ghana, by its Co-Founder, Isidore Kpotufe, Stabus has completed more than 8,000 trips, moved over 100,000 people and paid our vehicle partners over $120,000 in revenue.
Treepz also acquired Ugabus, a Ugandan bus company thereby heralding its entrance into East Africa. Ugabus commenced operations in 2016 and currently has 70% of all bus operators in Uganda. Its platform incorporates mobile money technology apart from cash for easy payments.
Founded in 2019 as Plentywaka Onyeka Akumah, , currently operates in Nigeria and Ghana. Plentywaka changed its name to Treepz in September 2021 in line with its ambition for a Sub-Saharan African Expansion.
MFS Africa Acquires Nigerian Superagent Network, Baxi
MFS Africa is the largest mobile money inter-operability hub in Africa, which connects mobile network operators across the continent through a single API. In addition to mobile remittance services, the MFS Africa API enables merchant payment, bulk payment, bank-to-wallet transfers, and an array of other cross border digital payments services. It was founded in 2010 by Dare Okoudjou.
Founded in 2014 by Degbola Abudu and Folu Majekodunmi, Baxi is one of Nigeria’s largest independent SME-focused electronic payment networks. Baxi provides a cash-in/cash-out offering as well as value-added services — account opening, money transfer, bill payment, and more — to the last mile. Through its network of more than 90,000 agents, Baxi has already processed over USD 1 Billion in transactions this year.
Following the acquisition’s close, MFS Africa will build Baxi into a key node on its digital payment network, allowing customers to make regional and global payments to and from Nigeria. MFS Africa will also expand Baxi’s proposition for offline SMEs to select markets within MFS Africa’s footprint of 320 million mobile wallets across more than 35 African countries.
The focus areas of both companies are complementary. Baxi simplifies and integrates online and offline payments for SMEs and merchants in Nigeria through its omnichannel distribution network. MFS Africa simplifies cross-border payments, integrating payments via one hub.
Egyptian Celebrity Shoutout Platform, Minly Acquires Dubai’s Oulo to Expand Reach
Minly, an Egyptian celebrity shoutout platform acquired Dubai-based Oulo to combine services and expand reach for an undisclosed value.
Both startups allow fans to connect with athletes, musicians, and other celebrities, and the merged businesses will combine their roster of celebrities across the Arab region.
Minly enables fans to request personalized videos from celebrities, influencers, or musicians for a price — similar to the US’ Cameo. Minly has accumulated over 130k users, who can choose between around 1k celebrities, including Tamer Hosny, Hazem Imam and Sawsan Badr. The company recently launched Minly Watch, a service which gives users the ability to virtually attend events. The platform debuted with an exclusive concert from Egyptian rapper Wegz which had over 32k attendees.
Founded in 2020, Oulo operates similarly to Minly, it allows users to pay for customized video messages from over 300 celebrities across Lebanon, Jordan, Iraq and Saudi Arabia, including Bassel Khaiat, Ali Jaber and Maguy Farah.
