EOH announces proposed disposal of Information Services business

As it continues with its stated strategic intent of improving liquidity and reducing debt, EOH Mthombo Proprietary Limited – a wholly-owned subsidiary of EOH, has entered into a share purchase agreement to dispose of 100% of its shares in the Information Services companies to Bachique 842 Proprietary Limited (subject to EOH Shareholder approval). This disposal forms part of creating a fit-for-purpose capital structure that is adequately supported by its cashflows.

Bachique 842 is a wholly-owned subsidiary of LR Africa Holdings Limited. LR Africa Holdings Limited is advised by Lightrock, a global private equity platform that backs purpose-driven entrepreneurs tackling the world’s biggest challenges. Since 2007, Lightrock and its predecessors in title have invested in companies that pursue scalable and tech-driven business models around the key impact themes of people, planet, and productivity/tech for good. Bachique 842 has acquired Information Services for the base purchase price of R417 000 000, based on an Enterprise value of R445 000 000.

Information Services provides credit checks, background screening and big data, analytics and technology in South Africa. The Information Services platform provides access to a rich pool of data across its business units, allowing it to provide unique insights to clients.

Information Services has evolved over the years from a data provider to a holistic solution provider for risk mitigation and data analysis tools, with each division focusing on a specific sub-set of data-driven solutions:

  • HTCSA: Data engineering and risk management
  • MIE: Background screening and vetting
  • XDS: Credit information bureau
  • Zenaptix: Software development covering various aspects of big data

Said EOH Group CEO, Stephen van Coller: “This transaction is in line with our strategy of disposing of a targeted group of IP companies as part of the Group’s deleveraging processes and represents a significant milestone in the implementation of these processes. The achievement of a more sustainable capital structure will allow the Group flexibility to execute on its long-term growth strategy. I’d like to express my thanks to the Information Services team and wish them the very best in their future endeavours with Lightrock. I believe that Lightrock is the right partner to unlock Information Services’ full potential, enabling both future growth and international expansion in its operations for the company and its people.”

To read more about the transaction please visit https://www.eoh.co.za/investor-relations/sens/

About EOH
The EOH Group is the largest technology business in Africa, providing the technology, knowledge, skills and organisational ability critical to Africa’s development and growth. Following the Consulting, Technology and Outsourcing model, the EOH Group provides high-value, end-to-end solutions to its clients in all industry verticals. The Group employs more than c.5500 people, delivering technology solutions and knowledge services to over 5 000 large enterprise customers across all major industries. As a leader in driving and supporting digital innovation, the Group offers solutions along a simple. Design-Build-Operate engagement model through its two independent businesses, iOCO and NEXTEC.

Please follow and like us:

Leave a Reply

Your email address will not be published.

Social Share Buttons and Icons powered by Ultimatelysocial