Capital Appreciation (CTA), a South African fintech group, has successfully completed the acquisition of software firm Dariel for $7 million (R131.2 million) through a combination of cash and shares. The deal, initially announced in April, involved the purchase of 100% of Dariel for an aggregate consideration of R85.3 million. This amount was settled with a cash payment of R46.9 million and the allotment of 25,243,779 CTA shares valued at R38.4 million.
Established in 2001, Dariel specializes in providing IT services to financial institutions and other players in the financial services and fintech sectors. Their solutions range from FX platforms to hospital administration systems, Know-your-client (KYC) tools, and single-customer-view systems. Dariel’s cloud-based offerings account for over 80% of their revenue, with extensive certifications in AWS and Azure.
Capital Appreciation, led by CEO Bradley Sacks, announced the completion of the acquisition on the Johannesburg Stock Exchange. Dariel will now be integrated into Capital Appreciation’s Software division, leveraging the expertise of its 180 experienced staff and entrepreneurial management. The companies anticipate significant synergies and collaboration opportunities, which they plan to explore immediately.
Michael Shapiro, the executive director and head of Capital Appreciation’s software division, expressed enthusiasm for the partnership, highlighting their shared focus on problem-solving and emerging technology. The founders of Dariel, Malcolm Rabson, Gregory Vercellotti, and Wayne Yan, will remain with the business, steering the Dariel team.
Being part of a listed company with a strong balance sheet provides Dariel with growth capital and financial resources to pursue larger projects and international market opportunities. Additionally, the association with Capital Appreciation grants Dariel access to specialized cloud, AI, machine learning, and UX/UI capabilities, fostering continued innovation and expansion of their products and services.
The successful acquisition positions Capital Appreciation and Dariel to drive advancements in the software development arena, creating significant value for customers, employees, partners, investors, and stakeholders.