New Acquisition For South African Tech Ecosystem As Responsive Tech Gets Bought

Capital Appreciation Limited, a South African fintech company, has acquired the Responsive Tech-nology group for R48,68 million. Responsive Tech Proprietary Limited and Responsive Digital Proprietary Limited are both 100% owned by the company, as is Rethink Digital Solutions Proprietary Limited. 

Capital Appreciation Joint CEO, Bradley Sacks
Capital Appreciation Joint CEO, Bradley Sacks

Responsive is a digital solutions company that works with clients in South Africa, the United States, Europe, and the United Kingdom to design and develop digital applications. For major South African and worldwide blue-chip clients, the business has a 10-year track record of delivering challenging digital transformation projects, online and mobile apps, and technological solutions. Brambles Limited (CHEP), Capitec, Coronation, Experian, MoneyGram, Nedbank, and Old Mutual are among these companies. 

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Capital Appreciation will subscribe for 20% of the outstanding shares of Regal Digital B.V., a related party technology business based in the Netherlands, for a cash investment of €500,000 as part of the transaction (R8,5 million). Regal Digital is the parent company of Firelava, a consulting firm that specializes in Web 3.0 technologies, non-fungible token (NFT) and Blockchain solutions, Google Firebase and cloud expert services, and solution architecture consultation. Flamelink B.V., a’software-as-a-service’ (SaaS) solution that offers a headless Content Management System (CMS) for Google’s Firebase and is now the de facto Firebase CMS with the most feature-rich offering in the market, owns an 80 percent stake in Regal Digital.

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Why The Acquisiton

Capital Appreciation Joint CEO, Bradley Sacks, noted that: “Responsive fits well with Capital Appreciation’s investment philosophy of investing in established, asset-light growth companies that deliver innovative and disruptive FinTech solutions to mainly institutional clients. We also look forward to exploring the potential for synergistic opportunities with existing operating units.”

The Responsive founders and directors (Andrew McElroy, Marsh Middleton and Brandon Fairweather) stated: “Weare excited to join a group that has such a strong culture of innovation, an extensive client base and a healthy balance sheet from which to expand. We look forward to adding our unique strength to the group to create the best experiences for existing and new clients. We also see synergies in creating web and mobile products that delight users by following a design thinking approach and expertly implementing the best technology solutions.”

Responsive Tech acquired Responsive Tech acquired

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer