JSE listed Capital Appreciation has acquired 100 percent of fintech software firm Synthesis Software Technologies for R132.1 million as its strategic future growth platform as it eyes expansion beyond South Africa.
According to Bradley Sacks, joint CEO of Capital Appreciation, “This acquisition is in line with Capital Appreciation’s value creation objectives and its strategy of providing established and emerging financial services companies with fintech services. Synthesis is well positioned to capitalise on financial institutions’ on-going requirements to invest in innovation, increase customer reach, reduce operating costs and enhance regulatory compliance.”
Founded in 1997, Synthesis serves clients such as Investec, Absa, Standard Bank, Capitec and Nedbank and will remain independent and continue to grow as a specialised fintech provider within Capital Appreciation to further invest in the business and expand its offerings.
Synthesis’ focus is on the biggest impact areas for fintech: cloud, digital channels, blockchain, big data. In addition Synthesis addresses upcoming trends such as artificial intelligence (AI) and machine learning, the firm is an accredited AWS Consulting Partner assisting financial institutions to become cloud ready, to execute mass migrations, to harness the benefits of big data analytics and to extract the cost savings and regulatory benefits of compliance, an increasing priority for financial services institutions across Africa.
Synthesis’ offering for banks and financial services institutions also include online banking and regulatory reporting solutions for both SARS (tax) and SARB (balance of payments).
“Synthesis started as a team of passionate software developers intent on transforming financial services for its customers in a meaningful way. As part of this journey, we earned their trust, built rewarding partnerships and provided high impact services,” said Michael Shapiro, MD of Synthesis. “This vision will be enhanced by the strong leadership and vision of the Capital Appreciation team.”