Mergence Group, a South Africa-based asset management and finance company has acquired a 26% stake in 2Engage, a disruptive fintech company. The acquisition was in tandem with its bid to expand globally.
Mergence began its business in 2014 as a financial and asset company. The company diversified its service to include commodity finance, investment management, and corporate solutions. This diversification and the bid to expand into the global market prompted the acquisition of a 26% stake in 2Engage.
The acquired company, 2Engage is a leading customer engagement and business solution platform that aggregates Africa’s market via digital media. The company also offers a digital reward and loyalty programme called “bonsella®” via its subsidiary Retail Engage.
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With the acquisition, Mergence will expand its services to 19 countries while using an additional R150-million to expand to Asia and South America.
The Managing Director, Mergence Group, Masimo a Badimo Magerman stated that 2Engage model fits perfectly into the African fintech trends of mobile financial transactions which is essential to the company.
On the other hand, 2Engage will leverage on Mergence’s financial services platform to offer increasing value to its retail engage customers.
The acquisition of a 26% stake in 2Engage also opens the opportunity for full acquisition of the fintech. Mergence is expected to buying off an additional 25% stake come 2020.
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