Sanlam Investment Holdings has acquired shares in financial technology business EasyEquities.
Sanlam announced this week that its subsidiary, Sanlam Investment Holdings, had entered into an agreement to acquire a 30% stake in First World Trader, trading as EasyEquities, from Purple Group.
The transaction is subject to the fulfilment or waiver of certain conditions, including the approval of the Competition Commission.
EasyEquities has disrupted the investments sector with its low barriers to opening an investment account, through its low-cost platform.
The deal is one further step towards joint efforts by Sanlam Investments and EasyEquities to make it easier for investors to be able to save by facilitating easier access to investments.
Charles Savage, the chief executive of Purple Group, said the EasyEquities transaction with Sanlam Investments will provide the group with added capital and skills and enable it to pursue its objectives, which include growing client numbers and products.
“We also look forward to announcing our international growth plans where the collaboration with Sanlam Investments provides invaluable insights, guidance and access to various jurisdictions.”
EasyEquities and Sanlam Investments are no strangers to partnering with the objective of improving access for investors. Direct investment platform SatrixNOW is a white-label version of EasyEquities.
Helena Conradie, the chief executive of Satrix, said EasyEquities and SatrixNOW share the same innovative culture and aim of democratising investments for all South Africans.
“These are the only investment platforms in the country that have no minimum investment amount, making it accessible to those with even the smallest of investments.”
Robert Roux, the chief executive of Sanlam Investments, said the deal was a natural fit for the company, because EasyEquities already has a good relationship with the launch of SatrixNOW .
“We believe that EasyEquities is a market leading fintech company and an innovative business focused on servicing the needs of its clients. It is typically the kind of business Sanlam seeks to partner with.”
Roux added that Sanlam has a vision to provide financial education, financial freedom and access to financial markets to a wide range of clients.
“This is a segment of the South African population that EasyEquities has already established a presence in. For both Sanlam Investments and EasyEquities, the primary focus is to service the clients’ needs, provide direct access to the market at an affordable cost in a simple and transparent way,” Roux said.