Report: Interswitch deal among biggest equity deals in 2011

by Stanley Azuakola

Fresh from the release of its report which mentioned Nigeria as one of the three fastest growing markets in the world, Ernst & Young has released a new report, Private equity roundup – Africa report, which profiles five of Africa’s largest 2011 private equity deals.

According to the report, over $3 billion worth of deals were closed in 2011 alone.

Among the Top 5, is the deal involving Nigeria’s payment processing company, Interswitch, which secured $110 million from Helios Investment Partners LLP and Adlevo Capital Managers LLC. Interswitch is owned by Mitchell Elegbe.

The full list is represented below, as seen on CP-Africa

1. Tracker Network Limited

Deal Value: $434 million
Country: South Africa
Firm: Actis Capital, RMB Ventures

Led by Actis Capital,  the Tracker Network Limited acquisition was the largest in the region with a deal value of about $434 million. Through the deal, Actis acquired a 40% stake in the business. Tracker is currently South Africa’s market leader in the vehicle recovery market and is looking to expand across the South African market in the next 5-7 years.

2. Universal Industries Corporation

Deal Value: $184 million
Country: South Africa
Firm: Ethos Private Equity Limited

Food refrigeration and heating systems manufacturer, Universal industries Corporation got a $184 million investment by Ethos Private Equity in a leveraged buyout deal in August 2011. Through the deal, Ethos worked to enhance the company’s operational efficiency to grow its local and pan-African market share.

3. Eaton Towers

Deal Value: $150 million
Country: Ghana
Firm: Capital International, Inc

African tower company, Eaton Towers notably raised about $150 million in financing from Capital International Inc. to expand its Africa tower sharing business as well as to enable Eaton buy additional tower portfolios from operators.

4. Interswitch Limited

Deal Value: $110 million
Country: Nigeria
Firm: Helios Investment Partners LLP, Adlevo Capital Managers LLC

Nigerian payment processing company, Interswitch got a $110 million capital investment representing a 65% acquisition stake to power the company’s growth plans which includes expanding into chip-and-pin card processing, from magnetic strip cards-based services .

5. Rift Valley Railways

Deal Value: $110 million

Country: Kenya

Firm: Citadel Capital, African Agriculture Fund, International Finance Corporation

Rift Valley Railways which has a 25-year concession to operate a century-old rail line with some 2,000 kilometers of track linking the Indian Ocean port of Mombasa in Kenya with the interiors of both Kenya and Uganda notably got investments from Citadel Capital, African Agriculture Fund and International Finance Corporation to the tune of $110 million.

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