Conexus Capital Growth Fund invests R27m to boost innovation in digital security
Etion Limited (JSE: ETO) has announced that it has acquired a new equity partner in Conexus Capital Growth Fund (“Conexus”). Conexus is represented by Clive Douglas Investments, which has taken a R27m stake in the Alt-x listed digital solutions company through a cash purchase of 70 000 000 ordinary shares. The shares represent 14.16% of the issued share capital of Etion, prior to the general issue, and 12,4% after the issue of the shares.
The deal is intended to strengthen Etion’s thrust into cutting-edge digital security innovation following its acquisition of cybersecurity specialist, LAWTrust, in June 2018. The acquisition happened alongside the group’s rebranding and repositioning of its operational business divisions to be more operationally flexible and responsive to rapidly changing client needs.
LAWtrust has since been merged into Etion Secure, the operating unit responsible for developing and implementing security solutions in the Etion value chain.
“We consider the new investment from Conexus to be a firm signal of support for Etion’s transition to date and its growth plans for the future,” said Group CEO Teddy Daka.
“Each of the underlying businesses in the Etion Group have significant organic growth opportunities that are at various stages of development and should come on book in the next 2-4 years,” said Clive Douglas, CEO of Clive Douglas Investments.
“The Etion Group, has acquired a number of interesting businesses over the past few years all led by seasoned and successful entrepreneurs. The next phase of the Group will focus on integrating the four divisions and entrenching itself with its customers by offering bespoke products and high levels of service. Partnering with successful entrepreneurs is at the heart of Conexus’ business model and this has been demonstrated in many different transactions over the past 10 years. Conexus will be appointing a representative to the board of Directors including observer rights to ensure active management of the investment on behalf of its investors,” he noted.
About Clive Douglas Investments
Clive Douglas established Clive Douglas Investments (Pty) Ltd (“Douglas Investments”) to manage money for selected High Net Worth Individuals (HNWI’s). Douglas Investments manages client funds on a discretionary basis and manages the investment exposure across all asset classes (i.e. equities, fixed income, alternate and cash) both locally and offshore. Douglas Investments offers private equity exposure to clients in the form of the Conexus Capital Growth Fund.
The focus is on equity investing given its long term ability to outperform other investment classes. The investment strategy is to research and exploit investment opportunities that present attractive fundamental value. Douglas Investments uses such opportunities to create a diversified portfolio, specific to each client and in accordance with their mandate and financial needs.
Clients of Douglas Investments will benefit from over 40 years combined experience of the executive directors, Clive Douglas and Richard Wills, as well as personalised and interactive service together with an innovative investment offering.
We create, digitise, connect and secure both generic and bespoke digital technology solutions to improve safety, productivity, connectivity and cybersecurity for our clients with one purpose in mind: to propel humanity forward. In our quest to achieve this, we actively draw on an engineering heritage that dates back over 30 years, as well as on our extensive capabilities in original design and manufacturing (ODM).
The horizontally integrated Etion value chain is driven by four solutions-based business units. Etion Create, previously Parsec, is where we design, develop and manufacture a wide range of advanced electronic and digital technologies for both internal and external clients.
Through Etion Digitise, previously Ansys Rail, we provide digital safety and environmental management systems ranging from sensors, asset management solutions, telematics and IoT and maintenance.
Through Etion Connect, previously Tedaka Network Solutions, we offer connectivity and communications products, solutions and services, including fibre wireless deployment, data, digital radio communications networks and network monitoring, as well as power-related infrastructure solutions.
Finally, the aim of Etion Secure, which incorporates LAWTrust, is to create confidence in business transactions by providing trusted identity, digital signature, authentication and encryption technology, supported by the very latest biometrics solutions, in order to secure countries, citizens and transactions.
Originally Published on: www.railwaysafrica.com