Sanlam Private Equity (SPE) has bought a controlling interest in Q LINK Holdings, a provider of payment application software to the SA insurance industry and other third-party benefit providers in the financial services sector.
The acquisition, which is SPE’s first in the financial technology sector, was executed via the firm’s new mid-market fund, an impact-focused fund launched in 2020 that aims to create and preserve at least 27,000 jobs while still delivering investment returns. SPE acquired its controlling stake in Q LINK by buying shares in the entity from UK private equity fund Apis Partners; local investment firm Multiply Group; and other minority shareholders.
“We are seeing the significant social impact, especially around financial inclusion and improving the lives of previously disadvantaged communities through the provision of financial access and high growth and good return prospects from this sector,” said SPE managing partner, Paul Moeketsi. “We are therefore very excited to acquire Q LINK as our first investment in the space.”
Q LINK provides payment application software that manages deductions in both the payroll and bank collection streams and claims to have saved SA public sector employees more than R300m in invalid deductions from court orders since 2014 through its emolument attachment order solution. The company, has been the preferred payment collections partner for many insurance companies for over 20 years, collecting about R4.5bn in monthly premiums for more than 133 clients, many in the insurance industry.
“Together with the management team, we will identify and unlock new growth opportunities while providing access to our capital, commercial expertise in investing and attractive BEE credentials,” Moeketsi said.
Q LINK has 179 highly skilled and specialised employees, 57% of whom are female and 45% from historically disadvantaged backgrounds. SPE’s acquisition is expected to grow direct jobs about 28% over the next few years as part of the mid-market fund’s focus on job creation and social impact.
“We are looking forward to working with a new strategic partner in SPE as we enter the next growth phase of our business,” said Q LINK founder Henry Smith. “We are delighted to align with a commercial investor who understands the importance of Q LINK’s continued independence as a strategic payment collections partner for several insurance companies in SA.”
The Q LINK acquisition follows SPE’s two previous acquisitions for its mid-market fund, namely red meat processor Cavalier Group and retail chain Absolute Pets.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.