Global Firms Eyeing South African It Companies For Ma Deals

Indeed, there is growing interest from international buyers in South African tech and software companies, with an influx of interest from Canadian, US, European and Dubai-based investors .

These buyers are particularly drawn to South Africa's high-quality intellectual property, which is available at a fraction of the cost of IP in developed markets, giving them the opportunity to gain access to both regional markets and established customer bases.

Global buyers are not only acquiring technology but are also seeking to expand their geographic footprint, leverage innovative solutions and enhance their market presence in the region. This trend points to an evolving M A market where strategic acquisitions aim to unlock broader growth opportunities beyond just technological assets.

• Lesaka Technologies buying Adumo
• Xero New Zealand acquiring Syft
• Advent International US acquiring Syspro
• Syntax Canada buying Argon Supply Chain Solutions
• Convergence Partners snapping up Datacentrix

Interestingly, the availability of capital is rife in the current global M A market and, contrary to seller logic, buyers won't shy away from higher deal values to acquire companies with the right business models and strong potential for growth. Deploying capital has never been the problem.

For instance, a key characteristic of the current M A landscape is the significant variation in company valuations. It is not unusual for businesses to receive offers that differ by as much as 50, and in some cases this can exceed 200. This considerable variation reflects the complex and multifaceted nature of M A activity, where each potential buyer brings their own set of strategic priorities, market insights and financial goals.