Mergers, Acquisitions and Financial Results

Ethos Private Equity’s new venture capital technology fund, Ethos Tech Fund 1, has made its first investment, leading the management buyout of information solutions provider INGO Information Solutions. The effective date of the buyout from Inala Technology Investments is 1 July this year.

The Ethos Tech Fund announced its first closing at R205 million in July last year. Investors include Ethos Private Equity, RMB, Metal Industries and Transnet pension funds, Eskom Pension & Provident Fund and the German Development Finance Institution.

Ethos Private Equity specialises in acquisitions that involve management equity participation."Our investment in INGO reflects our stated requirements for a venture capital fund - the ability to offer deserving entrepreneurs the right combination of capital, technology experience and global business building support," says Ethos Tech Fund CEO Claudia Koch.

"INGO more than meets our requirements. This is a company with a rand cost base operation delivering excellent business analysis, customised software development and project management skills, that is generating annual revenue of approximately R20 million after four years."

Koch says 70% of this is dollar- and sterling-based resulting from corporate contracts in the US and Europe in the chemical and broader- based industrial sectors.

INGO, an IT vendor-independent information solutions provider, offers services that include business and IT consulting, customisation of systems, software development, system implementation and integration, project management and post-implementation support.

"The company’s primary objective is to develop software that integrates with existing and often disparate information systems to improve the information flow between those systems and the broader business functions."

Ethos Private Equity CE André Roux says SA is ideally placed to generate globally competitive technologies and the firm believes the timing is right for investing in quality early stage technology businesses