Nedbank Acquires 100% Of Eqstra To Bolster Its Fleet Management Offering
Nedbank Acquires 100% Of Eqstra To Bolster Its Fleet Management Offering. Nedbank Group is pleased to announce that it has entered into an agreement with enX Group Limited (enX) to acquire 100% of the issued share capital of Eqstra Investment Holdings Proprietary Limited (Eqstra).
Eqstra offers fleet management services to business clients in South Africa and selected southern African countries. It is envisaged that this transaction will enhance and complement Nedbank’s fleet management business offerings in a way that’s set to converge Nedbank’s world-class internet-based fleet management system with Eqstra’s fleet-management service suite and that will benefit both entities’ existing and future client base.
The value of the transaction is approximately 0.6% and 2.5% on an equity value and enterprise value respectively of Nedbank Group’s total market capitalisation based on Eqstra’s financial information for the year ended 31 August 2023. The total consideration that Nedbank will pay, which includes the Subscription Amount and the repayment of shareholder loans to enX Group Limited, amounts to approximately R1 045m which is in the region of 1.0% of Nedbank’s market capitalisation.
Ciko Thomas, Managing Executive of Retail and Business Banking, noted: “A combined Eqstra and NedFleet operation will provide an integrated approach to fleet management, aimed at providing better quality, cost and scale to our joint clients. The acquisition will also expand Nedbank’s product and services offering in Namibia and eSwatini, and expand Nedbank Group’s footprint into a new jurisdiction in Africa, being Botswana.”
Jacqui Carr, Chief Executive Officer of Eqstra said: “Our new partnership with Nedbank promises to enhance our service offerings and accelerate our growth. This acquisition combines our fleet management expertise and custom designed, leading-edge enterprise systems with Nedbank’s client base, financial strength and technical resources. We are committed to a seamless transition and look forward to scaling our operations, continuing to invest in advanced technologies, and expanding our service offerings.”
