Agile Capital enjoys a considerable investment portfolio spanning multiple sectors in the local market. “As a key black-owned fund, our preferred ventures provide opportunities to assert meaningful change,” notes Tshego Sefolo, CEO: Agile Capital. “We are exceptionally pleased with this transaction by which we enter an industry positioned to benefit from structural drivers.”

Averge Technologies (Averge) is a specialist solutions provider and distributor of components specific to both the communications industry and the energy sector, additionally providing related consultancy services to its clients. The company facilitates turnkey solutions, designing and creating customised end-to-end power and telecommunication solutions.

The deal sees Agile, through its Private Equity fund with RMB Corvest, Agile Capital IV acquire a significant stake in the business, with the remainder split between Averge management and current CEO, Ettiene Visser. “Critically, Averge boasts an exceptionally experienced management team incentivised by direct interest in the business,” notes Sefolo. “The existing team has demonstrated its ability to grow the business despite tough trading conditions.”

Traditionally, lack of sector-specific knowledge and insufficient technical expertise represent barriers to entering the industry. “These concerns are negated by the present transaction,” explains Sefolo. “The business is well-placed to access opportunities across existing and adjacent markets as a direct result of the engineering proficiencies embedded within current management.”

Averge offers clients access to its experienced teams of engineers and electricians. “The business is primed to meet each client’s unique specifications and requirements,” notes Ettiene Visser, CEO: Averge. At present, the company provides turnkey solutions across an existing client base that includes notable brands such as Ericsson, MTN, Vodafone, ZTE and Huawei, as well as state owned enterprises such as Transnet and Eskom.

“We supply a range of specialist products and solutions including fibre optic apparatus across the communications sector, as well as overhead line equipment specific to the energy cluster,” outlines Visser. Operating via five primary divisions – DC Power Systems, Energy, Telecommunications, Network Optimisation and Specialised Services – the company is positioned for multi-directional growth. “The plasticity offered by the existing operating model ensures responsiveness not only to the market, but also to product innovation,” notes Visser.

“Alongside the appeal of its operational capabilities, the business remains scalable with an ability to tap into other related market segments, summarises Sefolo. “As a result, we are of the view that the business is well positioned to generate appropriate returns – notwithstanding the considerable prospects inherent within the local telecommunications sector, still beyond energy potentials.”

South Africa’s telecommunications industry is poised for further growth specifically regarding connectivity infrastructure, with recent reports indicating continued expansion across the information and communications technology (ICT) sector in particular. The Independent Communications Authority of South Africa (ICASA) currently identifies ICT as one of the biggest contributors to the mainstream economy.

The transaction ensures increased liquidity to drive growth, in addition to accessing the extensive relationships and networks offered by Agile – where potential synergistic internal pairings across Agile’s own investment portfolio present mutually supportive and profitable scenarios.

“This partnership is designed to generate empowered growth,” says Sefolo. “We project substantial yield.”