Thesele Group (Thesele) has bought a 40% stake in Knowledge Integration Dynamics (KID), marking the investment holding company’s first foray into the ICT space, and making KID South Africa’s largest black-owned focused data management solutions company.
The multi-million rand deal, which came into effect last month, makes KID a majority black-owned entity with a Level 4 BBBEE rating, with several of its subsidiaries now 100% black-owned as well as BBBEE Level 1 rated companies.
KID co-founder and MD Aubrey van Aswegen says the investment marks the start of a new growth phase for the data management specialists. “KID has grown fairly organically over its 20-year history, but we are now approaching a point where fuelling the same pace of growth will demand a more aggressive expansion phase and possibly strategic acquisitions. Our new partnership with Thesele Group will support this growth strategy,” he says.
Thesele, founded in 2005 by Sello Moloko and Thabo Leeuw, has a diverse investment portfolio across financial services, logistics, manufacturing and automotive industries. Thesele recently announced its acquisition of a 35% stake in South African water and wastewater solutions provider Talbot & Talbot. The KID acquisition is in line with Thesele’s long-term investment approach in existing and emerging growth sectors, says Thesele Executive Director Oliver Petersen.
Van Aswegen says KID had been in the market for a suitable BEE partner for some time. “We were looking for a suitable investor to not only improve our scorecard, but to play an active role in business development for us and bolster our growth aspirations,” he says. Thesele’s track record, networks and reputation in the investment community, along with its ethical approach to business, aligned with KID’s own culture and business model. The partnership will not be a ’passive’ one, he says. Thesele will work closely with KID to support mutually beneficial growth.
For Thesele, the investment in KID leverages several synergies, including the fact that “both entities have long operated in the financial services sector,” says Petersen. “Both groups also have the view that data and data management is a key growth area, with a wide range of opportunities in areas such as big data, the Internet of Things, automation, robotics and Artificial Intelligence.”
“This is a key milestone – not only for KID as a company, but also for its stakeholders, including staff and customers,” Van Aswegen says. “It will facilitate growth for us, and we look forward to Thesele growing their exposure to the ICT space using KID as the platform.”