SOUTH AFRICA – Agile Capital, through its private equity fund with RMB CORVEST, Agile Capital IV, has acquired a significant stake in Averge Technologies. The deal sees Agile acquire a significant stake in the business, with the remainder split between Averge management and current CEO, Ettiene Visser.
Averge Technologies (Averge) is a specialist solutions provider and distributor of components specific to both the communications industry and the energy sector, additionally providing related consultancy services to its clients.
Averge offers clients access to its experienced teams of engineers and electricians. “The business is primed to meet each client’s unique specifications and requirements,” notes Ettiene.
The transaction ensures increased liquidity to drive growth, in addition to accessing the extensive relationships and networks offered by Agile – where potential synergistic internal pairings across Agile’s own investment portfolio present mutually supportive and profitable scenarios.
“This partnership is designed to generate empowered growth; we pro Agile Capital enjoys a considerable investment portfolio spanning multiple sectors in the local market. As a key black-owned fund, our preferred ventures provide opportunities to assert meaningful change.
“We are exceptionally pleased with this transaction by which we enter an industry positioned to benefit from structural drivers.” notes Tshego Sefolo, CEO Agile Capital.
At present, the company provides turnkey solutions across an existing client base that includes notable brands such as Ericsson, MTN, Vodafone, ZTE and Huawei, as well as state owned enterprises such as Transnet and Eskom.
“We supply a range of specialist products and solutions including fibre optic apparatus across the communications sector, as well as overhead line equipment specific to the energy cluster,” outlines Visser.
Traditionally, lack of sector-specific knowledge and insufficient technical expertise represent barriers to entering the industry.
Sefolo explains, “The business is well-placed to access opportunities across existing and adjacent markets as a direct result of the engineering proficiencies embedded within current management.”
South Africa’s telecommunications industry is poised for further growth specifically regarding connectivity infrastructure, with recent reports indicating continued expansion across the information and communications technology (ICT) sector.